WASHINGTON, D.C. – August 3, 2015 – (RealEstateRama) — A monthly online survey found majority of California REALTORS® expect better or similar market conditions over the next year. Similar sentiments were expressed in a confidence survey conducted among REALTORS® nationwide.
The California Association of REALTORS® May Market Pulse Survey of more than 300 California REALTORS® saw more floor calls, listing appointments and open house traffic compared to April, suggesting a solid summer home-buying season. Eighty-six percent of California REALTORS® surveyed expect better or similar market conditions over the next year. The survey measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.
According to the survey, one in four (40 percent) transactions closed below asking price in May, down from the highest point of 55 percent in January 2015. More than a third of homes (34 percent) closed over asking price, and 26 percent closed at asking price.
Homes that sold above asking price sold for an average of 8 percent above asking price, down from 10 percent in April, but up from 6.5 percent in May 2014. Homes that sold below asking price sold for an average of 7 percent below asking price in May, down for the first time in four months.
Sixty-five percent of properties received multiple offers in May, down from 72 percent in April and up from 62 percent a year ago. The average number of offers per property decreased for the first time in three months, slipping from 3.6 in April to 2.8 in May.
According to the May REALTORS® Confidence Survey conducted by the National Association of REALTORS® among REALTORS® nationwide, although REALTOR® confidence has tapered compared to expectations in the previous month, REALTORS® in May were by and large “strongly confident” about the outlook for all property types in the next six months compared to last year. The NAR report indicates sustained job creation at a pace of 220 thousand jobs per month in 2015, lower FHA monthly mortgage insurance premium rates (resulting in a 0.5 percentage point reduction since January 2015), and the availability of three percent down payment for loans backed by Fannie Mae and Freddie Mac since early this year, are likely underpinning the improved market confidence.
REALTOR® respondents expressed concern that the new TILA-RESPA Integrated Disclosure (TRID) regulations may delay closings. In the national REALTOR® group’s survey of mortgage originators, 67 percent of respondents reported that TRID would lead to delays, while 27 percent reported it would lead to either delays or non-closings.
“We continue to see more buyer traffic and as home prices continue to stabilize. It will likely be a busy summer home-buying season,” said Chris Isaacson, president of the Silicon Valley Association of REALTORS®. “The Consumer Financial Protection Bureau’s recent proposal to delay the effective date of the new disclosure forms until October 1 will certainly help give all parties more time to better understand the new rule.”
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term “REALTOR®” is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
For further information, please contact Rose Meily at SILVAR Public Affairs, e-mail rmeily (at) silvar (dot) org, or phone (408) 200-0109.