Tuesday, September 8, 2009

Indexing confidence

Pont2 Technologies is looking to turn its widespread presence into timely market insight with its Real Estate Market Confidence Index, now officially up and running. The index is based on a monthly survey of Point2 users who rate the state of the real estate market as they see it in their area. Participants are asked to rate current conditions and the market outlook, on a scale of one to 10. The index represents the median, or mid point in total responses, for each topic.

For instance, the August index(the most recent available), indicates there is growing optimism about market conditions, but plenty of room for improvement. Using the scale where 1 represents bad and 10 translates into good, the confidence index for the month is 5.9. That’s a slight improvement over the August index of 5.4. There also seems to be more confidence in prospects for a long term rather than short term market recover.y Using the same scale, the short term optimism/pessimism index was 5.8, a full point below the 6.8 index of the outlook for a long term market conditions.

Of course no single window affords a complete view. You may also want to search the Realtor Confidence Index, updated throughout the year, and Zillow’s monthly Homeowner Confidence Survey.

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