Sentiment Among REALTORS® Retreats With Higher Mortgage Interest Rates
Among sellers, multiple offers shrink, and only 11 percent of homes sold above list price—this is the lowest in the data set history, which dates to April 2021.
The Market Outlook from the REALTORS® Confidence Index declined for sellers and held steady for buyers month over month.
- 8% of respondents expect a year-over-year increase in buyer traffic in the next three months, flat from 8% one month ago and from 17% one year ago.
- 12% of respondents expect a year-over-year increase in seller traffic in the next three months, down from 13% one month ago and from 16% one year ago.
With supply still limited relative to demand in some housing markets, 11% of homes sold above list price. This is an all-time low; however, the question was only first asked in April 2021. Last month, 16% sold above list price, and last year, 19% sold above list price.
- Homes listed received an average of 2.0 offers, down slightly from 2.2 last month and from 2.1 one year ago.
- 29% of buyers had all-cash sales, which was up slightly from 27% one month ago and flat from 29% 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 essentially flat from 4% one month ago and 5% 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, flat from 7% one month ago and 7% one year ago.
- 14% of contracts had delayed settlements in the past three months, down slightly from 16% last month, and unchanged from 14% one year ago.
- 4% of contracts were delayed due to appraisal issues, similar to 5% one month ago and 6% one year ago.
First-time buyers represented 29% of buyers, down from 31% last month and from 32% one year ago. Among all buyers:
- 20% purchased for non-primary residence use, flat from last month at 20% and up from 16% last year.
- 6% were purchased for vacation use, down slightly from 8% one month ago and up slightly from 4% one year ago.
- 1% of sellers sold to an iBuyer, flat from 2% one month ago and from 2% a year ago.
Contract activity shows a consistency among buyers waiving contingencies:
- 19% of buyers waived the inspection contingency, flat from 20% one month ago and 20% one year ago.
- 21% of buyers waived the appraisal contingency, up slightly from 18% one month ago and from 19% one year ago.
