Real Estate Market Trends – May 2023
The May 2023 REALTORS® Confidence Index reveals significant trends in the real estate market. Here’s a summary:
- Time on Market: The average time on the market has decreased to 18 days, indicating faster property sales.
- Contingency Waivers: There’s an increase in waiving the appraisal and inspection contingencies, reflecting heightened buyer competition.
- Buyer and Seller Outlook: 19% of respondents expect a year-over-year increase in buyer traffic, while 14% anticipate an increase in seller traffic.
- Homes Sold Above List Price: Despite a slight decline, 31% of homes are still selling above the list price due to limited supply relative to demand.
- Quick Sales and Multiple Offers: 74% of properties sell within one month, receiving an average of 3.3 offers.
- Virtual Home Purchases: 8% of buyers purchased homes solely based on virtual tours, showings, or open houses.
- Contract Delays and Terminations: 5% of contracts were terminated, and 12% experienced delayed settlements. Appraisal-related delays accounted for 7% of contract issues.
- First-time Buyers and Non-Primary Residence Purchases: First-time buyers represent 28% of buyers, and 15% purchased for non-primary residence use.
- iBuyer and Distressed Sales: 1% of sellers sold to iBuyers, and 2% of sales were distressed.
- Competitive Market Activity: 25% of buyers made all-cash purchases, 25% waived the inspection contingency, and 23% waived the appraisal contingency.
- Buyer Preference: 85% of buyer activity is focused outside city centers, favoring suburban or rural areas.
Source: REALTORS® Confidence Index, May 2023
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