Key Findings
The Market Outlook from the REALTORS® Confidence Index for buyers was flat from a year ago but up for sellers:
- 20% of respondents expect a year-over-year increase in buyer traffic in the next three months, down from 22% one month ago and flat from 19% one year ago.
- 21% of respondents expect a year-over-year increase in seller traffic in the next three months, flat from 22% last month but up from 14% one year ago.
With supply still limited relative to demand, 30% of homes sold above list price, up from last month’s 27% but flat from 31% a year ago:
- 67% of respondents reported that properties sold in less than one month. This is nearly flat from a month ago (68%) but down from 74% in May 2023.
- Homes listed received an average of 2.8 offers, down from 3.2 last month and from 3.3 offers 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 but flat from 8% 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, slightly up from 4% one month ago and unchanged from one year ago.
- 13% of contracts had delayed settlements in the past three months, up slightly from 11% last month but flat from one year ago.
- 7% of contracts were delayed due to appraisal issues, virtually unchanged from last month and one year ago.
First-time buyers represented 31% of buyers, down from 33% in April 2024 but up from 28% in May 2023. Among all buyers:
- 16% purchased for non-primary residence use, flat from last month and from May 2024.
- 5% were purchased for vacation use, unchanged from one month and from one year ago.
- 1% of sellers sold to an iBuyer, unchanged from one month and one year ago.
- 2% of sales were distressed, flat from both one month and one year ago.
Contract activity remains competitive:
- 28% of buyers had all-cash sales, flat from one month ago but up from 25% one year ago.
- 22% of buyers waived the inspection contingency, up from 19% one month ago but down from 25% one year ago.
- 20% of buyers waived the appraisal contingency, up from 18% one month ago but down from 23% in May 2023.
Buyers continue to look outside of city centers for the majority of their activity at 84%.