The National Association of Realtors recently released the November Realtors Confidence Index (RCI), a key indicator of housing market strength based on a monthly survey of more than 50,000 Realtors.
According to the survey results, 39 percent of recent buyers purchased a home with a Federal Housing Administration (FHA)-issued loan, and Realtors who took part in the November survey also reported the number of first-time home buyers soared to 51 percent.

“FHA helps provide affordable mortgage financing to homeowners, particularly first-time home buyers who are so important in drawing down inventory to help stabilize the current housing market,” said Vicki Cox Golder, NAR president and owner of Vicki L. Cox & Associates in Tucson, Ariz. “These recent survey results reaffirm that, despite its current challenges, FHA is a critical part of the American housing fabric.”

In addition, the RCI results indicated distressed sales surged to 33 percent of all home sales in November, and both investors and first-time homebuyer are competing for these properties. The presence of low-priced distressed properties on the market has influenced buyers’ perceptions of other homes for sale, and Realtors said many buyers have pricing expectations, treating every property as if it were a foreclosure.

Realtors also expressed ongoing concerns with the impact of the Home Valuation Code of Conduct on recent appraisals. Even when other comps are available, inexperienced or out-of-area appraisers continue to rely heavily on sales prices of distressed properties, according to some survey respondents.

“As the first, best source for real estate information, Realtors have their finger on the pulse of current housing trends, and their knowledge and experience offer valuable insights into today’s real estate market,” Golder said. “We know that an economic recovery is not possible without a housing recovery, and we will continue to work with policymakers at all levels to ensure that this happens.”