Key Findings
First-time buyers climbed to 35% of all buyers (the highest share since June 2020) as modest inventory improvements opened new entry points in the housing market. Despite the gain, overall market sentiment cooled: the REALTORS® Confidence Index Market Outlook retreated for both buyers and sellers on a monthly basis.
- 20% of respondents expect a year-over-year increase in buyer traffic in the next three months, down from 24% one month ago and up from 18% one year ago.
- 22% of respondents expect a year-over-year increase in seller traffic in the next three months, down from 28% one month ago and 27% one year ago.
With supply still limited relative to demand in some housing markets, 25% of homes sold above list price, down from 28% last year yet up from 21% one month ago:
- Homes listed received an average of 2.3 offers, down slightly from 2.5 last month and from 2.5 one year ago.
- 25% of buyers had all-cash sales, unchanged from 25% one month ago and down slightly from 27% one year ago.
- Due to the use of technology, 6% of buyers purchased a home based only on a virtual tour, showing, or open house without physically seeing the home — flat from one month ago and one year ago.
Contracts typically closed in 30 days, the same as last month and one year ago. But some faced delays or termination:
- 5% of contracts were terminated in the last three months, flat from 5% one month ago and 6% one year ago.
- 14% of contracts had delayed settlements in the past three months, essentially flat from 13% last month and 13% one year ago.
- 6% of contracts were delayed due to appraisal issues, flat from 6% one month ago and 7% one year ago.
First-time buyers represented 35% of buyers, up from 33% last month and from 30% one year ago. Among all buyers:
- 14% purchased for non-primary residence use, down from 16% last month and 17% last year.
- 5% were purchased for vacation use, down from 8% one month ago and virtually unchanged from 6% one year ago.
- Less than 1% of sellers sold to an iBuyer, down slightly from 2% one month ago and 2% one year ago.
- 1% of sales were distressed, virtually unchanged from 2% one month ago and down slightly from 3% a year ago.
Contract activity shows a reduction in buyers waiving inspection contingencies:
- 17% of buyers waived the inspection contingency, down from 19% one month ago and down from 25% one year ago.
- 24% of buyers waived the appraisal contingency, up from 16% one month ago and flat from 24% one year ago.
Buyers continue to look outside of city centers for the majority of their activity at 82%.
