Key Findings
Offers from buyers strengthen with increased sales above the list price and an increased share of buyers waiving contingencies.
The Market Outlook from the REALTORS® Confidence Index for buyers and sellers held steady as buyers eased.
- 18% of respondents expect a year-over-year increase in buyer traffic in the next three months, down from 21% one month ago and from 20% one year ago.
- 27% of respondents expect a year-over-year increase in seller traffic in the next three months, the same as 27% one month ago and up from 21% one year ago.
With supply still limited relative to demand, 28% of homes sold above list price, up from last month’s 18% and down slightly from 30% a year ago:
- 60% of respondents reported that properties sold in less than one month. This is flat from a month ago (60%) and down from 67% one year ago.
- Homes listed received an average of 2.5 offers, up slightly from 2.4 last month and down from 2.8 one year ago.
- 27% of buyers had all-cash sales, up slightly from 25% one month ago and down slightly from 28% 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. This is down slightly from 7% one month ago, and 8% 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, down slightly from 7% one month ago and up slightly from 5% one year ago.
- 13% of contracts had delayed settlements in the past three months, up from 10% last month, and flat from 13% one year ago.
- 7% of contracts were delayed due to appraisal issues, virtually unchanged from 6% one month ago and from 7% one year ago.
First-time buyers represented 30% of buyers, down from 34% the previous month and slightly lower than 31% one year ago. Among all buyers:
- 17% purchased for non-primary residence use, up from 15% last month and virtually unchanged from 16% last year.
- 6% were purchased for vacation use, up slightly from 5% one month ago and 5% one year ago.
- 2% of sellers sold to an iBuyer, up slightly from 1% one month ago and 1% one year ago.
- 3% of sales were distressed, virtually unchanged from 2% one month and 2% a year ago.
Contract activity shows no significant changes for buyers:
- 25% of buyers waived the inspection contingency, up from 20% one month ago and 22% one year ago.
- 24% of buyers waived the appraisal contingency, up from 20% one month ago and 20% one year ago.
Buyers continue to look outside of city centers for the majority of their activity at 88%.
