REALTORS® Confidence Index Report

Key Findings

First-time buyers increase to 31% from 28%, share of homes selling above asking price jumps to 21% from 15%.

The Market Outlook from the REALTORS® Confidence Index for sellers increased compared to last month.

27% of respondents expect a year-over-year increase in buyer traffic in the next three months, flat from 27% one month ago, but down from 30% one year ago.
29% of respondents expect a year-over-year increase in seller traffic in the next three months, up from 27% one month ago and 26% one year ago.

With supply still limited relative to demand, 21% of homes sold above list price, up from last month’s 15% and from 20% a year ago:

50% of respondents reported that properties sold in less than one month. This is up slightly from a month ago (47%) and down from 56% one year ago.
Homes listed received an average of 2.3 offers, down from 2.6 last month and from 2.7 one year ago.
32% of buyers had all-cash sales, up from 29% one month ago and down slightly from 33% one year ago.
Due to the lack of housing inventory, the pace of the market, and 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. While unchanged at 6% from one month ago, it is down from 10% 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, essentially flat from 6% one month ago and 6% one year ago.
13% of contracts had delayed settlements in the past three months, up from 15% last month, but down from 11% one year ago.
7% of contracts were delayed due to appraisal issues, up from 5% one month ago and essentially flat from 6% one year ago.

First-time buyers represented 31% of buyers, up from 28% last month and 26% one year ago. Among all buyers:

16% purchased for non-primary residence use, virtually flat from 17% last month and down from 21% last year.
5% were purchased for vacation use, unchanged from 5% one month ago and 5% one year ago.
1% of sellers sold to an iBuyer, down slightly from under 2% one month ago and 2% one year ago.
3% of sales were distressed, unchanged from 3% one month and from 3% a year ago.

Contract activity shows some signs of a slightly easier market for buyers:

24% of buyers waived the inspection contingency, up from 18% one month ago and virtually unchanged from 25% one year ago.
24% of buyers waived the appraisal contingency, up from 17% one month ago and from 19% one year ago.

Buyers continue to look outside of city centers for the majority of their activity at 83%.