First Alabama Real Estate Confidence Index Available Via UA Web Site

TUSCALOOSA, Ala. — The first Alabama Real Estate Confidence Index, compiled by the Alabama Center for Real Estate at The University of Alabama, reports a slight negative bias in real estate for the first quarter of 2010.

More than 637 real estate professionals were surveyed during the last quarter of 2009 about expectations for the first quarter of 2010. The new report will be issued quarterly and will reflect the pulse of the residential and commercial real estate industry in the state, according to Grayson Glaze, executive director of the Alabama Center for Real Estate. The full report results can be accessed at www.acre.cba.ua.edu, and respondents can complete the second quarter of 2010 survey from the Web site as well.

“By comparing expectations with current conditions on a quarterly basis, the results will provide accurate information on trends for the purpose of forecasting business objectives that pertain to real estate,” Glaze said.

Glaze said the real estate index will be patterned after the Alabama Business Confidence Index generated by the Center for Business and Economic Research at UA and that correctly forecast the statewide economic downturn in fourth-quarter 2007.

“With over 600 respondents in our first survey, the participation was even higher than we anticipated during our first run, Glaze said. “With each passing quarter and the accumulation of more data, the center will have the ability to identify and broaden its forecast analysis associated with the Alabama real estate market.”

The ACRE Leadership Council will provide input and oversight for the Alabama Real Estate Confidence Index, Glaze said. The mission of the ACRE Leadership Council is to focus on long-term growth and development of the center and to provide insight and counsel on current market trends and future areas of concentration, while consulting and networking with industry peers to promote ACRE and its services and programs to Alabama’s real estate community, according to Glaze.

The initial survey indicated an overall survey score of 49 indicating a slight negative bias for expectations. The expectations for the nation were 48, while expectations for Alabama were much more positive at 57. The scale ranges from 0-100 with 0 being much worse, 100 being much better, and 50 indicating no change expected.

Survey respondents answered eight basic questions regarding their outlook for national and local real estate. The initial survey was open from Oct. 7, 2009 through Jan. 12, 2010.

“The Culverhouse College of Commerce is fortunate to have the support of the real estate industry leaders that make up the ACRE Leadership Council,” Glaze said. “Council members represent a wealth of expertise, resources and experiences. In effect, they are extensions of the center, a network through which our industry outreach is enhanced and enriched. “We welcome partners who not only use the services and programs provided by the Center but who can also creatively envision how they can contribute to that work and benefit from their involvement.”