Key Findings

Sentiment among REALTORS® retreats with higher mortgage interest rates.

REALTORS® Confidence Index cover 300w 386h
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The Market Outlook from the REALTORS® Confidence Index retreated for both buyers and sellers on a monthly and annual basis.

  • 14% of respondents expect a year-over-year increase in buyer traffic in the next three months, a decrease from 19% one month ago and from 16% one year ago.
  • 17% of respondents expect a year-over-year increase in seller traffic in the next three months, a decrease from 20% one month ago and 21% one year ago.

With supply still limited relative to demand in some housing markets, 19% of homes sold above list price, this is a slight decline from last month and last year when it was 21%:

  • Homes listed received an average of 2.0 offers, essentially unchanged from 2.2 last month and from 2.1 one year ago.
  • 26% of buyers had all-cash sales, which was virtually unchanged from 25% one month ago and down from 31% one year ago.
  • Due to the use of technology, 7% of buyers purchased a home based only on a virtual tour, showing, or open house without physically seeing the home. This is up slightly from 5% one month ago and down 9% from 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, flat from 6% one month ago and 6% one year ago.
  • 12% of contracts had delayed settlements in the past three months, virtually unchanged from 13% last month, and from 13% one year ago.
  • 6% of contracts were delayed due to appraisal issues, virtually the same as 7% one month ago and from 7% one year ago.

First-time buyers represented 29% of buyers, down from 33% last month and virtually flat from 28% one year ago. Among all buyers:

  • 14% purchased for non-primary residence use, virtually flat from 13% last month and down from 20% last year.
  • 6% were purchased for vacation use, unchanged from 5% one month ago and from 6% one year ago.
  • 1% of sellers sold to an iBuyer, down from 3% one month ago and flat from 1% one year ago.
  • 2% of sales were distressed, unchanged from 2% one month ago and 2% a year ago.

Contract activity shows a mixed picture in buyers waiving contingencies:

  • 16% of buyers waived the inspection contingency, down from 20% one month ago and from 23% one year ago.
  • 21% of buyers waived the appraisal contingency, up from 17% one month ago and flat from 22% one year ago.

Buyers continue to look outside of city centers for the majority of their activity at 84%.

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