REALTORS® Reported “Strong” Buyer Traffic in Most States in August-October 2015

In the monthly REALTORS^® Confidence Index Survey, NAR asks REALTORS^®“How would you describe the past month’s housing market in the neighborhood or area where you make most of your sales?” The map below shows the traffic indices based on responses from August-October 2015, reported in the October 2015 REALTORS^® Confidence Index Survey Report.[1]

Buyer traffic, measured by the REALTORS^® Buyer Traffic Index, was “moderate” to “very strong” across most states. Sustained job creation, the low interest rate environment, the offering of three percent downpayment conventional mortgages, and lower mortgage insurance premiums for FHA loans are likely sustaining the strong demand for existing homes. 

Meanwhile, seller traffic, measured by the REALTORS^® Seller Traffic Index, was broadly “weak” across most states, except in Montana, Wyoming, North Dakota, Texas, Maine, and Alaska. REALTORS^® reported low inventory of properties in the lower price range and for those that are move-in ready.

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[1] The index for each state is based on data for the last three months to increase the observations for each state. Small states such as AK, ND, SD, MT, VT, WY, WV, DE, and D.C., may have less than 30 observations. Respondents were asked “How do you rate the past month's buyer traffic in the neighborhood(s) or area(s) where you make most of your sales?” The responses were “Strong (100)”, “Moderate (50),” and “Weak (0).” Respondents rated conditions or expectations as “Strong (100)”, “Moderate (50)”, and “Weak (0).” The responses are compiled into a diffusion index. Values 25 and  lower are considered “very weak”, values greater than 25 to 49 are considered “weak”, a value of 50 is considered “moderate”, values greater than 50 to 75 are considered “strong”, and values greater than 76 are considered “very strong”.