Summer, while it’s not over, is shaping up to be less than hoped for, with agents surprised at how quickly demand faded through the season.
According to the latest Credit Suisse Monthly Survey of Real Estate Agents, traffic levels remain below agents’ expectations due to continued lack of inventory and economic concerns abroad.
Each month Credit Suisse surveys agents about trends in buyer traffic levels, home prices, incentives, inventory levels and the length of time needed to sell a home, receiving responses from 600 real estate agents across the country in July.
Credit Suisse uses the results to get an understanding of the existing home market for homebuilders.
Since Credit Suisse generates the report for homebuilders, it ranks the top metros by number of single-family building permits. Here’s how the top three cities performed in July.
Hint: They’re all three very different.
As a frame of reference for the three cities, this chart shows the national average for America.
Click to enlarge
(Source: Credit Suisse)
The average Buyer Traffic Index for America edged down 1 point to 40 in July, compared to 41 in June, indicating traffic levels remaining below agents’ expectations following the June pullback, the report stated.
3. Atlanta, Georgia
Despite “low inventory frustrating buyers” and “buyers not sure about the economy,” according to real estate agents, the city is managing to keep up with agent expectations
Turns out, July actually performed better than June, with Credit Suisse’s index landing at 50 this month from 47 in June.
Agents attributed the success to solid demand trends especially at low and mid-price points, driven by favorable mortgage rates.
Click to enlarge
(Source: Credit Suisse)
2. Dallas, Texas
Dallas significantly stands out from the rest of the country, even Houston, the No. 1 homebuilder market, thanks to what many agents say is the result of a very strong job market.
The city still faces the same inventory shortage that most of the country is dealing with, but agents said they “continue to see steady job growth supporting healthy trends.” As a result, the buyer traffic index improved in July, now above agents’ expectations, increasing to 55 this month, from 43 in June.
Click to enlarge
(Source: Credit Suisse)
3. Houston, Texas
It may be the No. 1 city in terms of single-family building permits, but it is taking a beating from oil prices dropping.
According to the survey, traffic came in below agent expectations in July, siting at 28 in July, unchanged from June.
Agents in the area continued to cite the negative impacts to housing demand from lower oil prices, including layoffs and much needed job growth.
Click to enlarge
(Source: Credit Suisse)
