Key Findings

The REALTORS® Confidence Index continues to 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 increased to the highest levels since Spring 2023.

• 27% of respondents expect a year-over-year increase in buyer traffic in the next three months, an increase from 24% one month ago but down from 33% one year ago.
• 27% of respondents expect a year-over-year increase in seller traffic in the next three months, an increase from 22% one month ago and up from 25% one year ago.

With supply still limited relative to demand, 16% of homes sold above list price, down slightly from last month’s 18% and flat from 16% a year ago:

• 53% of respondents reported that properties sold in less than one month. This is flat from a month ago (53%) and down from 56% one year ago.
• Homes listed received an average of 2.1 offers, flat from 2.1 last month and down from 2.4 one year ago.
• 28% of buyers had all-cash sales, up from 25% one month ago and essentially flat from 29% 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. While flat at 5% from one month ago, it is down from 9% one year ago.

Contracts typically closed in 35 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 5% one year ago.
• 16% of contracts had delayed settlements in the past three months, up slightly from 14% last month and unchanged from 16% one year ago.
• 5% of contracts were delayed due to appraisal issues, flat from 5% one month ago and down slightly from 6% one year ago.

First-time buyers represented 31% of buyers, slightly up from 30% last month up from 29% one year ago. Among all buyers:

• 16% purchased for non-primary residence use, up from 13% last month and unchanged from last year.
• 4% were purchased for vacation use, unchanged from one month ago and down slightly from 5% one year ago.
• Less than 1% of sellers sold to an iBuyer, down from 2% one month ago and 1% one year ago.
• 2% of sales were distressed, flat from one month and from a year ago.

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

• 20% of buyers waived the inspection contingency, down from 22% one month ago and from 24% one year ago. 
• 18% of buyers waived the appraisal contingency, down from 21% one month ago but up from 15% one year ago.

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

Here is the full report