REALTORS® Confidence Index

Key Findings

Days on market fall to 24; sellers received an average of 2.7 offers; 24% of homes sold above the list price.

The Market Outlook from the REALTORS® Confidence Index for buyers increased slightly but is flat for sellers:

19% of respondents expect a year-over-year increase in buyer traffic in the next three months, up from 16% one month ago and 11% one year ago.
18% of respondents expect a year-over-year increase in seller traffic in the next three months, up from 17% one month and 10% one year ago.

With supply still limited relative to demand, 20% of homes sold above list price, but down from last month’s 24% and 31% a year ago:

60% of respondents reported that properties sold in less than one month. This is down from a month ago (62%) and from 72% in August 2023.
Homes listed received an average of 2.4 offers, down from 2.7 offers last month and down from 3.2 one year ago.
Due to the lack of housing inventory, the pace of the market, and the use of technology, 8% 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 8% one month ago and from 7% one year ago.

Contracts typically closed in 30 days, the same as last month and one year ago. But some faced delays or termination:

5% of contracts were terminated in the last three months, essentially flat from 6% one month ago and 5% one year ago.
14% of contracts had delayed settlements in the past three months, essentially flat from 15% last month and 14% one year ago.
6% of contracts were delayed due to appraisal issues, down slightly from 7% from last month and up slightly from 7% one year ago.

First-time buyers represented 26% of buyers, down from 29% in July 2024 and August 2023. Among all buyers:

19% purchased for non-primary residence use, up from 13% last month and 16% last year.
7% were purchased for vacation use, up from 4% one month and 5% one year ago.
2% of sellers sold to an iBuyer, essentially unchanged from one month and one year ago.
1% of sales were distressed, flat from 1% one month ago and 1% from one year ago.

Contract activity shows some signs of a slightly easier market for buyers:

26% of buyers had all-cash sales, down slightly from 27% one month ago and 27% one year ago.
18% of buyers waived the inspection contingency, down slightly from 20% one month ago and down from 23% one year ago.
20% of buyers waived the appraisal contingency, down from 22% one month ago but 22% in August 2023.

Buyers continue to look outside of city centers for the majority of their activity at 88%.