PAR leaders continue to be optimistic about future growth in housing

Yesterday during the Pennsylvania Association of Realtors® Board of Directors meeting, I had the opportunity to talk about some exciting new survey results concerning our industry. Leaders of our association continue to be optimistic about future growth in housing, according to a new survey conducted by Keystone Analytics®.

Key findings include:

• Pennsylvania’s real estate industry leaders consistently find market indicators moving in directions that reflect a healthy real estate market. Essentially, leaders largely believe that the market will deliver healthy economic conditions such as higher sales prices (61 percent) and multiple offer deals (61 percent), and less of undesirable conditions such as foreclosures (14 percent). In addition, over 60 percent of respondents felt that the commonwealth’s housing market will improve over the next six months.
• Nearly two in three respondents expect to see an increase in first-time homebuyers in the next six months. In a strong housing economy, Realtors® specializing in residential property sales could expect first time homebuyers to be a growing share of their customer base. The vast majority of industry leaders surveyed (65 percent) agree that there will be an increase in first-time homebuyers in Pennsylvania through the remainder of 2016.
• Leaders view RESPA changes as having a small but tolerable impact on the real estate transaction. When asked if the recent Real Estate Settlement Procedures Act (RESPA) changes have impacted their business, 37 percent indicated that the impact has been small but tolerable. Twenty-eight percent noted that the transaction periods have been longer, while 16 percent said they have experienced lender difficulties. Seventeen percent responded that the changes had resulted in no impact on their business, while only two percent indicated that the changes have resulted in failed transactions. In last year’s survey, over 60 percent of respondents thought that the changes to RESPA would impact their business.
• Realtors® see the greatest increase among Generation Y clients. When asked about their client base, 46 percent of respondents indicated the largest growth among buyers and sellers aged 25-34. Nearly 28 percent of respondents said that Gen Xers (ages 35-50) continue to be involved in the market. Interestingly, the vast majority of survey respondents (68 percent) are aged 50 and over, while 23 percent are under the age of 50.

A $25 gift card was randomly awarded to one member completing the survey. Congratulations to Nancy Wright from RE/Max Realty Brokers in Pittsburgh. The results are based on an Internet survey of 94 members of the Pennsylvania Association of Realtors® who are identified as leaders of the association.