Key Findings
With modest improvements in affordability, first-time buyers ticked up. REALTORS®’ expectations for a stronger Spring market from both buyers and sellers grew.
The Market Outlook from the REALTORS® Confidence Index grew for both buyers and sellers on a monthly and annual basis.
- 37% of respondents expect a year-over-year increase in buyer traffic in the next three months, an increase from 35% one month ago, and a gain from 27% one year ago.
- 31% of respondents expect a year-over-year increase in seller traffic in the next three months, an increase from 29% one month ago and 29% one year ago.
With supply still limited relative to demand in some housing markets, 14% of homes sold above list price, this is down from last year when it was 21% and down from 16% one month ago:
- Homes listed received an average of 2.3 offers, up slightly from 2.2 last month and flat from 2.3 one year ago.
- 31% of buyers had all-cash sales, which was up from 27% one month ago and virtually unchanged from 32% one year ago.
- Due to 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 flat from 5% from one month ago and 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:
- 6% of contracts were terminated in the last three months, flat from 5% one month ago and 5% one year ago.
- 14% of contracts had delayed settlements in the past three months, flat from 14% last month, and from 13% one year ago.
- 8% of contracts were delayed due to appraisal issues, a slight uptick from 5% one month ago and from 7% one year ago.
First-time buyers represented 34% of buyers, up from 31% last month and from 31% one year ago. Among all buyers:
- 16% purchased for non-primary residence use, flat from 16% last month and from 16% last year.
- 5% were purchased for vacation use, up slightly from 3% one month ago and flat from 5% one year ago.
- Less than 1% of sellers sold to an iBuyer, down from from 3% one month ago and 1% one year ago.
- 3% of sales were distressed, virtually unchanged from 2% one month and flat from 3% a year ago.
Contract activity shows a reduction in buyers waiving contingencies reversed course after a dip last month:
- 20% of buyers waived the inspection contingency, up from 12% one month ago and down from 24% one year ago.
- 23% of buyers waived the appraisal contingency, up from 15% one month ago and flat from 23% one year ago.
Buyers continue to look outside of city centers for the majority of their activity at 87%.
