February Massachusetts 2010 REALTOR® Market Index up Almost 100 percent Compared to the Same Time Last Year
Price Index on positive side of scale in February
WALTHAM, MA – March 16, 2010 – (RealEstateRama) — The Massachusetts Association of REALTORS® (MAR) today announced that for the second month in a row members reported solid improvement in market conditions over February 2009 according to results of the February 2010 Massachusetts REALTOR® Market Index (RMI). REALTOR® members also feel that prices are trending in a positive direction.
“Members that I have spoken with across the state, as is echoed in the REALTOR® Market Index, are feeling more positive about the market,” said 2010 MAR President Kevin Sears, broker/co-owner of Sears Real Estate in Springfield. “Buyers are taking advantage of the favorable market conditions and the majority of members surveyed expect to see prices either stay level or go up over the next year.”
In February 2010, the REALTOR® Market Index was 41.67, which was 99.53 percent higher than the 20.88 score recorded in February 2009. On a month-to-month basis, the February 2010 RMI was up 21.47 percent from the January 2010 score of 34.30. Measured on a 100-point scale, a score of 50 is the midpoint between a “strong” (100 points) and a “weak” (0 points) market condition.
The REALTOR® Price Index was up 73.38 percent in February 2010 compared to the same time last year (30.44 in 2009 to 52.78 in 2010). On a month-to-month basis the February index number was up 6.47 percent from the Home Sales Price Index number in January 2010 (49.57).
“With sales up the past seven months, the market is moving in a positive direction, but the lack of inventory will continue to have an impact on pushing prices up if more sellers don’t get into the market,” said Sears. “It is a delicate balance right now, because if prices go up too much, the positive sales activity we’ve been seeing will dry up and push the market back down.”
In February, when asked how aware their buyer and seller clients were about the extension and expansion of the tax credit, 53 percent responded that their clients were “completely aware” and 40 responded that their clients were “somewhat aware.” Six percent responded that their clients were either “neutral” (3%) or “somewhat aware” (3%). None of the respondents reported that their clients were “completely unaware.“
About the REALTOR® Index Methodology:
The Massachusetts REALTOR® Market Index (RMI) and Price Index (RPI) are based on monthly responses from a random sampling of Massachusetts Association of REALTORS® members on the state of the housing market. More specifically, the survey asks members two basic questions pertaining to the real estate business in their market area in Massachusetts.
1. How would you describe the current housing market?
2. What are your expectations of home prices over the next year?
In addition to these standard questions, the survey each month includes one wildcard question that changes each month and is based on an industry hot topic.
The RMI is calculated in the following way. Respondents indicate whether conditions are, or are expected to be “strong” (100 points), “moderate” (50 points), and “weak” (0 points). The results are the average score for each question. A score of 50 is the threshold between a “strong” and a “weak” condition. Similarly, the question about home prices over the next year (REALTOR® Price Index) is calculated using five categories: “Rise 0-5%” (75 points), “Rise 5%+” (100 points), “Level” (50 points), “Fall 0-5%” (25 points), and “Fall >5%” (0 points).
About the Massachusetts Association of REALTORS®:
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 20,000 members. The term REALTOR® is registered as the exclusive designation of members of the National Association of REALTORS® who subscribe to a strict code of ethics and enjoy continuing education programs
