While the market is stable, it’s still below expectations due to borrowers being unwilling to pay current prices and a limited supply of desirable inventories, the latest Credit Suisse (CS) monthly survey of real estate agents said.
The results of the survey reiterate concerns agents had back in September that an insufficient supply of affordable inventory in desirable locations is blocking the housing market from growing.
Overall, the survey’s buyer traffic index was little changed, landing at 37 in October from 36 in September. The weighted traffic index also rose 1 point, indicating trends stable but below agents’ expectations.
In October, 30 of the 40 markets surveyed witnessed lower than expected traffic, slightly up from 29 in September.
According to Credit Suisse, the top markets in the nation are Atlanta, Dallas and Houston, based on single-family building permits.
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(Source: Credit Suisse)
Here’s how the top three housing markets are doing in the country
3. Atlanta, Georgia
Atlanta’s buyer traffic index bounced back in October, with the index rising to 39, up from 14. However, agents continued to discuss the scarce supply of inventory, as more real estate agents discussed buyer resistance to higher home prices. Local agents noted that “inventory still remains scares,” and that “interest rates (are) still very low.”
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(Source: Credit Suisse)
2. Dallas, Texas
Dallas stood out from the rest of the nation, posting a jump in its buyer traffic index in October, returning to levels indicating trends above agents’ expectations. This month the Dallas index increased to 60 (from 36 in September). The main reason behind the rise: More buyers are relocating to Texas.
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(Source: Credit Suisse)
1. Houston, Texas
The largest market in the country posted that its demand conditions remained weak in October, with its buyer traffic index slipping to 20 (from 25 in September). Nearly all comments from real estate agents discussed how demand trends remain challenged by layoffs and job insecurity.
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(Source: Credit Suisse)
