Key Findings
All-cash home buyers continue to show strength in the market as first-time buyers struggle. The average number of offers shrank to 2.1; however, 21% of homes still sold above the list price.
The Market Outlook from the REALTORS® Confidence Index weakened for both buyers and sellers on a monthly basis.
- 16% of respondents expect a year-over-year increase in buyer traffic in the next three months, down from 17% one month ago but flat from 16% one year ago.
- 21% of respondents expect a year-over-year increase in seller traffic in the next three months, down from 23% one month ago but up from 17% one year ago.
With supply still limited relative to demand, 21% of homes sold above list price, however, this is flat from last month’s 21% and down from 24% a year ago:
- 58% of respondents reported that properties sold in less than one month. This is relatively unchanged from a month ago (59%) and down from 62% one year ago.
- Homes listed received an average of 2.1 offers, down from 2.4 last month and from 2.7 one year ago.
- 31% of buyers had all-cash sales, up slightly from 29% one month ago and from 27% one year ago.
- Due to the use of technology, 9% of buyers purchased a home based only on a virtual tour, showing, or open house without physically seeing the home. This is up slightly from 8% 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, flat from 6% one month ago and 6% one year ago.
- 13% of contracts had delayed settlements in the past three months, up slightly from 12% last month, and down slightly from 15% 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 28% of buyers, down slightly from 30% last month and 29% one year ago. Among all buyers:
- 20% purchased for non-primary residence use, up from 14% last month and from 13% last year.
- 6% were purchased for vacation use, flat from 6% one month ago and up slightly from 4% one year ago.
- 1% of sellers sold to an iBuyer, virtually unchanged from 2% one month ago and 1% one year ago.
- 2% of sales were distressed, effectively unchanged from 3% one month and 1% a year ago.
Contract activity shows no significant changes for buyers:
- 23% of buyers waived the inspection contingency, up from 20% one month ago and 20% one year ago.
- 22% of buyers waived the appraisal contingency, virtually unchanged from 23% one month ago and 22% one year ago.
Buyers continue to look outside of city centers for the majority of their activity at 84%.
