RE Broker & Agent Confidence Relitively Optimistic

RISMedia (01/08/10) On a scale of one to 10, Point2 Technologies' Real Estate Confidence Index settled at a reading of 5.91 in December -- down a bit from the previous month but still relatively optimistic. The national gauge hit a high of 6.03 percent in November. The December results suggested that industry professionals were encouraged by the federal government's newly expanded tax incentive and its positive impact on lower-priced homes but discouraged by the upcoming expiration of the initiative, which runs through April of this year. Factors contributing to favorable sentiment also included more stringent loan underwriting, which was viewed as critical for sustained market recovery. On the other hand, continued pressure on property prices in several markets because of low appraisals and high foreclosure inventories contributed to the faltering lack of confidence in the market. Additionally, in a trend that has been documented for more than six months, realty brokers and agents based in U.S. cities with a major military presence continue to take a relatively more upbeat stance on the business climate.