The most recent Massachusetts Association of Realtors (MAR) report of the Realtor Price Confidence Index (RPCI) is good news for those homeowners looking to sell this season. The RPCI, an indicator of realtor confidence in the strength of the market as it relates to securing fair-market value for real estate, climbed to 76.96 (out of a possible 100 points) in January — signaling its 24th consecutive month of increases. Since December, the index is up 1.57 points.
To calculate this score and the Realtor Market Confidence Index (RMCI), a random sample of surveys to Massachusetts Association of Realtors members is collected. The survey asks two very simple questions:
- How would you describe the current housing market?
- What are your expectations of home prices over the next year?
A third question unrelated to the RMCI or RCPI is posed based on current events and context of the market. Each response to the RCPI survey reports that expected conditions to:
Rise >5% (score of 100 points)
Rise 0-5% (score of 75 points)
Level (score of 50 points)
Fall 0-5% (score of 25 points)
Fall >5% (score of 0 points)
From this information we can ascertain that members of the Massachusetts Association of Realtors believe strongly that the price of homes will see significant growth in the current and near-future market. A score of over 75 points (current RPCI: 76.96) indicates that most respondents believe prices will rise 0-5% with a minority concluding that it will increase over 5% from here.
Zur Attias, of The Attias Group, believes that the market deserves even more confidence, predicting a 5-8% increase in home values this season.
“Values of homes in the area are well positioned to continue rising this season,” Attias noted, “and we expect to see a significant increase in this low-inventory seller driven market.”
Partly responsible for the steady RPCI is the currently limited inventory of the Greater Boston area. “Low inventory has realtor confidence about prices remaining positive,” according to 2014 MAR President Peter Ruffini. Would you like to exert greater control over the price of your home in the face of multiple offer scenarios? Sounds like a healthy market to sell!