Key Findings
First-time buyers grew, reflecting seasonal strength and slightly improved affordability conditions. A smaller share of buyers waived inspection and appraisal contingencies as homes remained on the market longer, creating a more balanced market in some areas.
The Market Outlook from the REALTORS® Confidence Index grew for both buyers and sellers on a monthly and annual basis.
- 35% of respondents expect a year-over-year increase in buyer traffic in the next three months, an increase from 31% one month ago, and a gain from 26% one year ago.
- 29% of respondents expect a year-over-year increase in seller traffic in the next three months, an increase from 28% one month ago and 27% one year ago.
With supply still limited relative to demand in some housing markets, 16% of homes sold above list price, this is flat from last year and relatively unchanged from 15% one month ago:
- Homes listed received an average of 2.2 offers, unchanged from last month and down from 2.6 one year ago.
- 27% of buyers had all-cash sales, which was virtually unchanged from 28% one month ago and down slightly from 29% one year ago.
- Due to 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 flat from 5% from 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:
- 5% of contracts were terminated in the last three months, flat from 5% one month ago and 6% one year ago.
- 14% of contracts had delayed settlements in the past three months, flat from 14% last month, and from 15% one year ago.
- 5% of contracts were delayed due to appraisal issues, essentially unchanged from 6% one month ago and from 5% one year ago.
First-time buyers represented 31% of buyers, up slightly from 29% last month and from 28% one year ago. Among all buyers:
- 16% purchased for non-primary residence use, down slightly from 18% last month and from 17% last year.
- 3% were purchased for vacation use, down from 7% one month ago and from 5% one year ago.
- 3% of sellers sold to an iBuyer, virtually unchanged from 2% one month ago and 2% one year ago.
- 2% of sales were distressed, unchanged from 2% one month and virtually flat from 3% a year ago.
Contract activity shows a reduction in buyers waiving contingencies as the market became more balanced in some areas:
- 12% of buyers waived the inspection contingency, down from 18% one month ago and from 18% one year ago.
- 15% of buyers waived the appraisal contingency, down from 19% one month ago and 17% one year ago.
Buyers continue to look outside of city centers for the majority of their activity at 85%.
