Real Estate Confidence Index Rebounds in March

Although the real estate market still has a long way to go on the road to recovery, confidence in the market is increasing, according to the ""March 2010 Real Estate Confidence Index"":http://agent.point2.com/RECI/RECI_March2010_Report.pdf (RECI) survey recently released by ""Point2 Technologies"":http://www.point2.com/index.asp, a Web-based inventory management and online marketing software developer.

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Brokers and agents surveyed for the March RECI reversed three months of declining optimism and pushed the index up from 5.63 in February 2010 to 5.77 in March, a jump of 2.49 percent. The index is based on a one to 10 scale, with one being ""bad"" and 10 being ""good.""

Three variables/time periods make up the RECI, and all three components improved in March.

The current sentiment component, which tracks respondent sentiment of current market conditions made the biggest jump, moving up 3.49 percent to 5.04. The long-term (12 to 18 months) outlook variable was up 3 percent to 6.51 on the scale, while the short-term (three to six months) optimism/pessimism gauge improved just 0.87 percent to 5.76. [COLUMN_BREAK]

Point2 said cautious optimism and a general sense of stabilizing market conditions in many parts of the United States were driven by declining inventories in the low- to mid-price range home categories, which some respondents also linked to more-frequent bidding wars.

Multiple offers on bank-owned properties in some markets and buyer motivation to move ahead of the government's April 30 deadline for the current homebuyer tax credit also contributed to increased market activity and optimism.

In addition, sporadic positive sentiment surrounding the onset of spring -- typically a more active time of the year for real estate -- combined with the tax credit deadline boosted respondents' expectations for the coming months.

Amidst the renewed optimism, negative sentiment and apprehension remained apparent in many states, with survey respondents indicating buyer reluctance to commit due to job uncertainty. Furthermore, brokers and agents in most states expected pressure on prices to continue, driven by current foreclosure inventories and more foreseen to hit the market.

The RECI was launched in June 2009, with survey results first publicly released in July 2009. The index aims to provide a forward look at the housing market from the perspective of those most attuned to local market conditions -- licensed real estate professionals. Respondents offer a pure, ""street-level"" view of where the market might be headed, rather than where it has been.

The survey is open to the Point2 agent membership and to tens of thousands of additional licensed real estate professionals across the nation at the beginning of each month.