REALTORS® Confidence Index Report

Key Findings

The Market Outlook from the REALTORS® Confidence Index for buyers and sellers eased.

21% of respondents expect a year-over-year increase in buyer traffic in the next three months, down from 28% one month ago and from 22% one year ago.
27% of respondents expect a year-over-year increase in seller traffic in the next three months, down from 30% one month ago and up from 22% one year ago.

With supply still limited relative to demand, 18% of homes sold above list price, down from last month’s 21% and down from 27% a year ago:

60% of respondents reported that properties sold in less than one month. This is up from a month ago (57%) and down from 68% one year ago.
Homes listed received an average of 2.4 offers, flat from 2.4 last month and down from 3.2 one year ago.
25% of buyers had all-cash sales, down slightly from 26% one month ago and from 28% one year ago.
Due to the lack of housing inventory, the pace of the market, and 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 unchanged from 7% one month ago, and up only slightly from 6% one year ago.

Contracts typically closed in 30 days, the same as last month and one year ago. But some faced delays or termination:

7% of contracts were terminated in the last three months, up slightly from 6% one month ago and up from 4% one year ago.
10% of contracts had delayed settlements in the past three months, down from 13% last month, and down slightly from 11% one year ago.
6% of contracts were delayed due to appraisal issues, unchanged from 6% one month ago and from 6% one year ago.

First-time buyers represented 34% of buyers, up from 32% last month and up slightly from 33% one year ago. Among all buyers:

15% purchased for non-primary residence use, flat from 15% last month and virtually unchanged from 16% 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 2% one month ago and unchanged from 1% one year ago.
2% of sales were distressed, virtually unchanged from 3% one month and up flat from 2% a year ago.

Contract activity shows no significant changes for buyers:

20% of buyers waived the inspection contingency, down from 22% one month ago and nearly unchanged from 19% one year ago.
20% of buyers waived the appraisal contingency, up slightly from 19% one month ago and 18% one year ago.

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