REALTORS® Confidence Index

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%.