Listings of homes for sale have been trimmed by first time home buyers with loans guaranteed by the U.S. Federal Housing Administration this year, based on the Realtor Confidence Index compiled by the National Association of Realtors and the survey it conducted in November.
Based on the RCI study, 39 percent of home buyers in recent months this year bought a home using FHA-guaranteed home loans and that the percentage of first time home buyers soared to 51 percent this year.
According to Vicki Cox Golder, president of NAR and founder of Tucson-based Vicki L. Cox and Associates, first time home buyers have contributed significantly in cutting down the record-high housing inventory and in stabilizing the housing market and that the FHA remains a crucial part of the development of the U.S. housing sector.
The RCI study also showed that distressed residential sales surged to 33 percent of all house sales in November and that both first time buyers and investors have been competing for these types of properties. The predomination of lower-priced distressed homes has also influenced the pricing perception of residential buyers. Realtors observed that buyers expect all properties in listings of homes for sale to be priced low even if many in the listings are not distressed or foreclosed.
Additionally, survey respondents are still concerned about the effects of the Home Valuation Code of Conduct on current appraisal practices. They are still complaining about the hiring of untrained, out-of-area and inexperienced appraisers who continue to depend on the sales prices of foreclosed and distressed homes even when there are other comparable sales available.
In response, NAR president Golder said that the realtor association will keep on working with legislators to ensure that correct appraisals are made and that realtors continue to give home buyers the best service they can get.
According to NAR, the RCI index is a major gauge to measure the strength of the housing market. It is based on surveys of over 50,000 NAR realtors about their observations and expectations on demand for housing, home prices and related economic conditions.
In related news reports, the Treasury Department has announced that it will provide local and state housing agencies with billions in funding next year to enable them to help first time home buyers make their home purchases and cut down the still record numbers of properties in listings of homes for sale around the country.
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