According to the November, 2009 Realtors Confidence Index survey, 39 percent of recent buyers purchased a home with a Federal Housing Administration-insured loan. Realtors also reported that the number of first-time home buyers continued to climb to 51 percent.

One of every three homes sold last year were distressed sales, the RCI also determined, with investors and first-time home buyers vying for these bargains. The result of the preponderance of foreclosures, however, has been a negative impact on the pricing of non-distressed properties, Realtors report. Home buyers have pricing expectations of all homes comparable with foreclosure prices. In addition, Realtors expressed ongoing concerns with the impact of the Home Valuation Code of Conduct on recent appraisals. According to some survey respondents, inexperienced or out-of-area appraisers continue to rely heavily on sales prices of distressed properties, even when other comps are available.

“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,” said NAR president Vicki Cox Golder, in the survey announcement. “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.”

The RCI is a key indicator of housing market strength based on a monthly survey of more than 50,000 Realtors; in a typical month there are more than 3,000 usable responses. Participants are asked about their expectations for the demand for homes, price of homes, and other economic conditions.  The National Association of Realtors represents 1.2 million members involved in all aspects of the residential and commecial real estate industries.