The Market Outlook from the REALTORS® Confidence Index for buyers and sellers continued to gain positive steam in December 2023.
Here are the main takeaways:
With supply still limited relative to demand, based on info gathered by Realtors®, we can see that 16% of homes sold above list price. That percentage is equal to that of a year ago, though down from last month's 19%.
First-time buyers represented 29% of buyers, which is down from 31% in November 2023 and December 2022. Among all buyers, Realtors® finds:
Realtors® also finds that contracts typically closed in 30 days--the same as last month and one year ago--though some faced delays or termination:
Realtors® also stated that contract activity will remain competitive:
- Due to the pace of the market, the use of technology, and lack of housing inventory, 9% of buyers were found to have purchased a home based only on a virtual tour, showing, or open house without physically seeing the home. This is up from 6% from both one month ago and one year ago.
First-time buyers represented 29% of buyers, which is down from 31% in November 2023 and December 2022. Among all buyers, Realtors® finds:
- 16% purchased for non-primary residence use, which is down from 18% last month and flat from last year.
- 5% were purchased for vacation use—unchanged from one month ago and one year ago.
- 2% of sales were distressed, which is up slightly from one month and one year ago.
- 1% of sellers sold to an iBuyer, which is down slightly from one month and one year ago.
Realtors® also finds that contracts typically closed in 30 days--the same as last month and one year ago--though some faced delays or termination:
- 6% of contracts had delayed settlement due to appraisal issues, which is down slightly from 7% last month and flat from one year ago.
- 16% of contracts had delayed settlements in the past three months—the same as last month and down slightly from 17% a year ago.
- 5% of contracts were terminated in the last three months—about the same as one month ago and flat from one year ago.
Realtors® also stated that contract activity will remain competitive:
- 29% of buyers had all-cash sales—up from 27% last month and up slightly from 28% in last year.
- 24% of buyers waived the inspection contingency—up from 18% one month ago and flat from one year ago.
- 15% of buyers waived the appraisal contingency—down from 19% one month and 18% one year ago.
- Buyers continue to look outside of city centers for the majority of their activity at 85%.
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