REALTORS® Confidence Index

Key Findings

The REALTOR® Confidence Index shows stability in outlook. One-fifth of homes still moved above asking price despite lengthened time on market.

The Market Outlook from the REALTORS® Confidence Index for buyers and sellers was virtually flat from last month:

19% of respondents expect a year-over-year increase in buyer traffic in the next three months, down slightly from 21% one month ago and up from 7% one year ago.
19% of respondents expect a year-over-year increase in seller traffic in the next three months, virtually flat from 20% one month ago and up from 7% one year ago.

With supply still limited relative to demand, 19% of homes sold above list price, down slightly from last month’s 20% and down from 28% a year ago:

59% of respondents reported that properties sold in less than one month. This is up slightly from a month ago (57%) and down from 66% in October 2023.
Homes listed received an average of 2.5 offers, up slightly from 2.4 last month and the same as one year ago.
27% of buyers had all-cash sales, down from 30% one month ago and 29% 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 up from 6% 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:

5% of contracts were terminated in the last three months, essentially flat from 6% one month ago and 6% one year ago.
15% of contracts had delayed settlements in the past three months, essentially flat from 15% last month and from 16% one year ago.
7% of contracts were delayed due to appraisal issues, virtually unchanged from 6% last month and from 7% one year ago.

First-time buyers represented 27% of buyers, slightly up from 26% last month but slightly down from one year ago when it was 28%. Among all buyers:

17% purchased for non-primary residence use, up slightly from 16% last month and 15% last year.
5% were purchased for vacation use, down from 7% one month and flat 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 one year ago.

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

19% of buyers waived the inspection contingency, up slightly from 17% one month ago and down from 24% one year ago.
23% of buyers waived the appraisal contingency, up from 21% one month ago and one year ago.

Buyers continue to look outside of city centers for the majority of their activity at 85%.