Realtor Sentiment Survey
Third Quarter 2016: Indiana Realtors Say Low Rates and a Stronger Economy Fuel a Hot Market
Indiana Realtors indicate that low mortgage interest rates, which have fallen to roughly 3.4 percent in July, has been a key factor in the state’s hot housing market this summer. Responding to the Indiana Association of REALTORS® Sentiment Survey for the third quarter, 51 percent of Realtors responded that mortgage rates were an important factor driving the market—well ahead of the economy/consumer confidence, which was the second most common issue reported by 31 percent of all respondents. These factors helped pave the way for nearly 25,770 existing home sales in Indiana in the second quarter of 2016—the highest number of sales for a single quarter on record.
While demand is strong, the inventory of homes for sale continues to fall. Fifty-two percent of survey respondents stated that seller traffic was lower than average, which is down slightly from the previous version of this survey, but well above the 37 percent mark recorded at this time last year. Many Realtors expect the market to begin to even out some, however. Fifty-four percent of respondents stated that the market will either improve for buyers or will be neutral over the next three to six months.
Note: This survey is conducted by the Indiana Association of REALTORS® and the Indiana Business Research Center. All survey respondents are members of the Indiana Association of REALTORS®. View the archives page to access other releases.
Survey Results
How would you characterize the level of buyer traffic for single-family homes over the past 30 days?
N=469
Values above 50 indicate traffic is viewed as stronger than average.
How would you characterize the level of seller traffic for listing single-family homes over the past 30 days?
N=468
Values above 50 indicate traffic is viewed as stronger than average.
Compared to one year ago, is your number of pending sales:
N=468
Values above 50 indicate pending sales are higher.
Over the past 30 days, is the time for a home staying on the market until it is sold:
N=469
Values above 50 indicate length of time is increasing.
Over the next 3 to 6 months, do you think that single-family home prices will:
N=452
Values above 50 indicate prices are expected to increase.
Over the next 3 to 6 months, do you think that single-family home sales volume will be:
N=451
Values above 50 indicate volume is expected to be strong for the time of year. (Note: Question wording changed in 2014 Q4.)
Over the next 3 to 6 months, do you see the market:
N=450
Values above 50 indicate the market is expected to improve for buyers.
What do you think are the most important factors driving the residential real estate market currently and/or in the future?
N=423