Today we issued the results of our November 2010 REALTOR® Market Index(RMI) and REALTOR® Price Index (RPI). The positive news is that on a month-to-month basis, the November RPI was up over October. This is the third month-to-month gain. The less-than-positive news is that the RMI was down compared to the month before after an increase in October. On a year-to-year basis the trend continues that both the RMI and the RPI were down compared to the same time last year. At the bottom of the post I’ve included the methodology for both indexes.
Here are the highlights:
- REALTOR® Market Index was 18.56. Down 51.91% from same time last year
- REALTOR® Market Index was down 10.55% from October
- REALTOR® Price Index was 44.74. Down 9.34% from same time last year
- REALTOR® Price Index was up 3.97% from October. This is the third straight month-to-month increase.
The “Hot Topic” question had to do with what what type of impact Realtors(R) feel a change or modification to the Mortgage Interest Deduction would have on the housing market (check out our blog post on the MID from yesterday).
What do you think? Please let us know.
About the REALTOR® Index Methodology:
The Massachusetts REALTOR® Market Index (RMI) and Price Index (RPI) are based on monthly responses from a random sampling of Massachusetts Association of REALTORS® members on the state of the housing market. More specifically, the survey asks members two basic questions pertaining to the real estate business in their market area in Massachusetts.
- How would you describe the current housing market?
- What are your expectations of home prices over the next year?
In addition to these standard questions, the survey each month includes one wildcard question that changes each month and is based on an industry hot topic.
The RMI is calculated in the following way. Respondents indicate whether conditions are, or are expected to be “strong” (100 points), “moderate” (50 points), and “weak” (0 points). The results are the average score for each question. A score of 50 is the threshold between a “strong” and a “weak” condition. Similarly, the question about home prices over the next year (REALTOR® Price Index) is calculated using five categories: “Rise 0-5%” (75 points), “Rise 5%+” (100 points), “Level” (50 points), “Fall 0-5%” (25 points), and “Fall >5%” (0 points).