Key Findings
At 33%, all-cashbuyers jumped to the highest share since March 2014. At 26%, first-time buyers matched the lowest share recorded from November 2021to October 2008.
The Market Outlook from the REALTORS® Confidence Index for buyers and sellers declined in February 2024:
- 30% of respondents expect a year-over-year increase in buyer traffic in the next three months, down from 36% one month ago and up from 19% one year ago.
- 26% of respondents expect a year-over-year increase in seller traffic in the next three months, down from 28% last month and up from 13% one year ago.
With supply still limited relative to demand, 20% of homes sold above list price, up from last month of 16% and down from 24% a year ago:
- 56% of respondents reported that properties sold in less than one month. Up from 53% a month ago and flat from 57% in February 2023.
- Homes listed received an average of 2.7 offers, flat from last month and one year ago.
- Due to the lack of housing inventory, the pace of the market, and the use of technology, 10% of buyers purchased a home based only on a virtual tour, showing, or open house without physically seeing the home. Up from 3% one month ago and 7% one year ago.
Contracts typically closed in 30 days, the same as last month and one year ago. But some faced delays or termination:
- 6% of contracts were terminated in the last three months, similar to one month and one year ago.
- 11% of contracts had delayed settlements in the past three months, similar to last month and one year ago.
- 6% of contracts had delayed settlement due to appraisal issues, up slightly from 5% last month and one year ago.
First-time buyers represented 26% of buyers, down from 28% in January 2024 and 27% in February 2023. Among all buyers:
- 21% purchased for non-primary residence use, up from 17% last month and 18% last year.
- 5% were purchased for vacation use, up slightly from 3% one month ago and flat from one year ago.
- 2% of sellers sold to an iBuyer, flat from one month and one year ago.
- 3% of sales were distressed, nearly flat from one month and one year ago.
Contract activity remains competitive:
- 33% of buyers had all-cash sales, up from 32% last month and 28% in last year.
- 25% of buyers waived the inspection contingency, up from 21% one month ago and 22% one year ago.
- 19% of buyers waived the appraisal contingency, up from 16% one month and down from 24% one year ago.
Buyers continue to look outside of city centers for the majority of their activity at 84%.