Bankers&Tradesmen, June 19th, 2012
In May, for the second straight month, the Realtor Market Index (RMI) and the Realtor Price Index (RPI) tracked by the Massachusetts Association of Realtors hit all-time highs, despite the fact that almost half of local Realtors report clients having a difficult time securing financing.
In May, the RMI stood at 60.38, up 115 percent from the May 2011 score of 28. This is the highest point the Index has reached since the association began tracking the data, according to a statement. In addition, this is the first time the RMI has reached the 60-point mark. On a month-to-month basis, the May RMI was up 7.2 percent from 56.31 in April 2012.
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 RPI stood at 62.38 in May, up 60.4 percent from the May 2011 RPI of 38.89. This is also the highest point reached on the RPI scale since data has been tracked, and the first time the RPI has reached the 60-point mark as well. This is also the first time there has ever been four straight months over the 50-point mark. On a month-to-month basis, the RPI was up 4.2 percent from the April 2012 RPI of 59.86.
“These new Index highs are a direct result of the steady strides the real estate market is making here in Massachusetts,” said 2012 MAR President Trisha McCarthy, broker at Keller Williams Realty in Newburyport. “We continue to see positive gains on the employment front and we hope that greater access to financing for qualified buyers follows suit.”
In May, MAR members were asked to describe their clients’ ability to secure financing in the current lending environment. Forty-seven percent responded it was either “somewhat more difficult” (36 percent) or “significantly more difficult” (11 percent) to secure financing than the year before. Forty-two percent reported it “remained the same” while 10 percent reported it was “somewhat easier” (9 percent) or “significantly easier” (1 percent) than the year before.
Follow Len and Leslie Marma of Success! Real Estate on their facebook business page, “Marshfield Matters” …… click LIKE to receive real estate info and what’s happening in Marshfield.