Key Findings

Sentiment among REALTORS® retreats with higher mortgage interest rates.

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The Market Outlook from the REALTORS® Confidence Index retreated for buyers, but was unchanged for sellers on a monthly and annual basis.

  • 13% of respondents expect a year-over-year increase in buyer traffic in the next three months, a decrease from 14% one month ago and from 19% one year ago.
  • 17% of respondents expect a year-over-year increase in seller traffic in the next three months, unchanged from one month ago and down from 19% one year ago.

With supply still limited relative to demand in some housing markets, 16% of homes sold above list price, this is a decline from 19% last month and last year when it was 20%: 

  • Homes listed received an average of 2.1 offers, essentially unchanged from 2.0 last month, down from 2.5 one year ago.
  • 27% of buyers had all-cash sales, which was virtually unchanged from 26% one month ago and 28% one year ago.
  • Due to the use of technology, 5% 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% from one month ago and similar to 4% 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, essentially flat from 6% one month ago and 6% one year ago.
  • 14% of contracts had delayed settlements in the past three months, up slightly from 12% last month, and flat from 14% one year ago.
  • 6% of contracts were delayed due to appraisal issues, the same from 6% one month ago and from 6% one year ago.

First-time buyers represented 30% of buyers, up slightly from 29% last month and from 28% one year ago. Among all buyers: 

  • 15% purchased for non-primary residence use, virtually flat from 14% last month and down from 21% last year.
  • 7% were purchased for vacation use, down slightly from 6% one month ago and from 5% one year ago.
  • 1% of sellers sold to an iBuyer, flat from 1% one month ago and virtually the same from 2% 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:

  • 20% of buyers waived the inspection contingency, up from 16% one month ago and from 18% one year ago.
  • 22% of buyers waived the appraisal contingency, virtually unchanged up from 21% one month ago and down slightly from 24% one year ago.

Buyers continue to look outside of city centers for the majority of their activity at 85%.

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