According to the Massachusetts Association of Realtors (MAR), for the second straight month both the Realtor Market Index (RMI) and the Realtor Price Index (RPI) hit all-time highs in May. Despite the upbeat mood of Realtors across the state, 47% of those responding to the survey feel their clients are having a more difficult time securing financing than the year before.
"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 2012, the Realtor Market Index was 60.38, which was up 115% from the May 2011 score of 28. This is the highest point the Index has reached since the association has been tracking the data. 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% from the 56.31 score in April 2012. Measured on a 100-point scale, a score of 50 is the midpoint between a "strong" and a "weak" market condition.
The Realtor Price Index was 62.38 in May, which was up 60.4% from the May 2011 RPI of 38.89. This is the highest point reached on the RPI scale since the data has been tracked and first time that 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% from the April 2012 RPI of 59.86.
In May 2012, Realtor members were asked to describe their clients' ability to secure financing in the current lending environment? 47% responded it was either "somewhat more difficult" (36%) or "significantly more difficult" (11%) to secure financing than the year before. 42% reported it had "remained the same" while 10% reported it was "somewhat easier" (9%) or "significantly easier" (1%) than the year before.