Issue link: https://viewer.e-digitaledition.com/i/555779
Monthly 'Hot Topic' Question The June "Hot Topic" question asked REALTORS how long it would take for the new closing procedures (Real Estate Settlement Procedures Act/Truth in Lending Act "RESPA/TILA"), which have been delayed to Oct. 3, 2015, to feel like a normal part of the real estate transaction. Of those REALTORS who responded, 36.1 percent indicated it would take three to six months for RESPA/TILA to feel normal. 45 percent responded with over six months and 19 percent indicated it would take six to nine months. 26 percent indicated it would take nine months to a year. Less than 10 percent of REALTORS who responded indicated that it would take little to no transition time. Nine percent said it would take an unknown amount of time. "There are a lot of professionals involved in the closing process and knowing and understanding the new rules will be very important to keep the market running smoothly," says Fitzgerald. About the Data Sets Pending sales: The tracking of signed purchase and sales agreements (also called "pending sales") provides reliable information about where the real estate market is heading in coming months. A pending sale or a sale "under agreement" is when the buyer and seller agree on the terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close and be recorded as such. MAR is the only organization that compiles this statewide information from Multiple Listing Services each month. Monthly pending (or under agreement) data and closed sales data come from the three REALTOR-aŸliated Multiple Listing Services in Massachusetts. They are the Berkshire County Multiple Listing Service, Cape Cod & Islands Association of REALTORS Multiple Listing Service, Inc. and MLS Property Information Network, Inc. The data is compiled by 10K Research and Marketing, Inc. and updated each month. As a result, previous data may change after the reports have been run. The REALTOR Index Methodology: The Massachusetts REALTOR Market Confidence Index (RMCI) and Price Confidence Index (RPCI) 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 RMCI 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 Confidence 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). About the Massachusetts Association of REALTORS Organized in 1924, the Massachusetts Association of REALTORS is a professional trade organization with more than 19,000+ members. The term REALTOR is registered as the exclusive designation of members of the National Association of REALTORS who subscribe to a strict code of ethics and enjoy continuing education programs. ■ REALTY NEWS | Greater Boston Builder+Architect BOSTON.BUILDERARCHITECT.COM