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Despite a sluggish summer for home sales, potential buyers are still facing pockets of steep competition in some parts of the housing market.
Sixty percent of home sellers nationwide sold their home in less than a month, a sign of strong buyer demand, according to the latest REALTORS® Confidence Index, a survey of 1,600 NAR members. But the market has eased somewhat, with the average home listed in August receiving 2.4 offers, down from 3.2 a year earlier. Twenty percent of homes sold above list price in August, down from 31% a year ago.
In areas where competition remains high, some home buyers are still waiving contingencies to make their offers stronger. For example, 18% of buyers waived the inspection contingency and 20% waived the appraisal contingency in August, according to NAR’s data.
Whether the fall market fares better than summer likely will depend on where you live. “In areas with persistent housing shortages, principally in the Northeast region, the recent falling interest rates could reignite more buyer interest—but without necessarily increasing supply,” says NAR Chief Economist Lawrence Yun. “Therefore, multiple offers could intensify.”
On the other hand, Yun notes that in areas with a measurable increase in inventory, like in the South, the number of buyers could match or even outpace housing supply.
Home buyers also are increasingly facing off against cash buyers. Twenty-six percent of buyers in August paid in cash, much higher than the historical average of 15%, according to NAR research. “Those in the ‘haves’—compared to the ‘have-nots’—are doing well,” Yun says. “Record high stock market wealth, along with record high housing wealth, allows for more cash purchases.”
REALTOR® Competition Remains Strong, Too
NAR membership remained high at the end of August, about 1.53 million, showing that real estate remains a viable career, Yun says. “It could be due to more listings coming onto the market,” he notes. Since 2020, inventory levels have been at all-time lows but are gradually starting to climb. “Inventory levels are 20% above one year ago,” Yun says. “That requires more activity and movement of REALTORS®.”
Yun also notes that falling mortgage rates tend to lead to greater buyer activity, so real estate pros may perceive more business opportunities are coming.
