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Key Findings
The REALTOR® Confidence Index saw an increase in optimism for buyers and sellers. First-time buyers are up, a common trend in fall/winter.
The Market Outlook from the REALTORS® Confidence Index for buyers and sellers was increased to the highest levels since March 2023 and April 2023, respectively:
- 24% of respondents expect a year-over-year increase in buyer traffic in the next three months, an increase from 19% one month ago and up from 16% one year ago.
- 22% of respondents expect a year-over-year increase in seller traffic in the next three months, an increase from 19% one month ago and up from 12% one year ago.
With supply still limited relative to demand, 18% of homes sold above list price, down slightly from last month’s 19% and 19% a year ago:
- 53% of respondents reported that properties sold in less than one month. This is down from a month ago (59%) and down from 62% in November 2023.
- Homes listed received an average of 2.1 offers, down from 2.5 last month and 2.6 one year ago.
- 25% of buyers had all-cash sales, down from 27% one month ago and 27% one year ago.
- Due to the lack of housing inventory, the pace of the market, and 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 down from 8% 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, essentially flat from 5% one month ago and 6% one year ago.
- 14% of contracts had delayed settlements in the past three months, essentially flat from 15% last month and from 16% one year ago.
- 5% of contracts were delayed due to appraisal issues, down from 7% last month and from 7% one year ago.
First-time buyers represented 30% of buyers, slightly up from 27% last month but virtually unchanged from one year ago at 31%. Among all buyers:
- 13% purchased for non-primary residence use, down from 17% last month and 18% last year.
- 4% were purchased for vacation use, down slightly from 5% one month and from 5% one year ago.
- 2% of sellers sold to an iBuyer, essentially unchanged from one month and one year ago.
- 2% of sales were distressed, flat from one month ago and virtually unchanged from 1% a year ago.
Contract activity shows some signs of a slightly easier market for buyers:
- 22% of buyers waived the inspection contingency, up from 19% one month ago and from 18% one year ago.
- 21% of buyers waived the appraisal contingency, down from 23% one month ago but up from 19% one year ago.
Buyers continue to look outside of city centers for the majority of their activity at 87%.
