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Key Findings
REALTOR® expectations for the next three months continue to increase for both buyers and sellers. First-time buyers remain at an all-time low. Cash buyers jump.
The Market Outlook from the REALTORS® Confidence Index for buyers and sellers continued to increase:
- 21% of respondents expect a year-over-year increase in buyer traffic in the next three months, up from 19% one month ago and 8% one year ago.
- 20% of respondents expect a year-over-year increase in seller traffic in the next three months, up from 18% one month and 10% one year ago.
With supply still limited relative to demand, 20% of homes sold above list price, flat from last month’s and down from 26% a year ago:
- 57% of respondents reported that properties sold in less than one month. This is down from a month ago (60%) and from 69% in September 2023.
- Homes listed received an average of 2.4 offers, flat from 2.4 last month and down from 2.6 one year ago.
- 30% of buyers had all-cash sales, up from 26% one month ago and 29% 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 from 8% one month ago and 9% 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, essentially flat from 5% one month ago and 6% one year ago.
- 15% of contracts had delayed settlements in the past three months, essentially flat from 14% last month and up slightly from 13% one year ago.
- 6% of contracts were delayed due to appraisal issues, flat from 6% last month and from 7% one year ago.
First-time buyers represented 26% of buyers, flat and remaining at an all-time low from August 2024 and down from 27% in September 2023. Among all buyers:
- 16% purchased for non-primary residence use, down from 19% last month and 18% last year.
- 7% were purchased for vacation use, flat from 7% one month and 6% one year ago.
- 2% of sellers sold to an iBuyer, essentially unchanged from one month and one year ago.
- 2% of sales were distressed, virtually flat from 1% one month ago and 1% from one year ago.
Contract activity shows some signs of a slightly easier market for buyers:
- 17% of buyers waived the inspection contingency, down slightly from 18% one month ago and down from 27% one year ago.
- 21% of buyers waived the appraisal contingency, essentially flat from 20% one month ago but down from 24% in September 2023.
Buyers continue to look outside of city centers for the majority of their activity at 87%.
