REALTORS® Confidence Index: August 2022 Market Outlook.pdf

11% of respondents expect a year-over-year increase in buyer traffic in the next three months, flat from 10% in July 2022 but down from 31% in August 2021. 12% of respondents expect a year-over-year increase in seller traffic in the next three months, down from 14% in July 2022 and 25% in August 2021. With supply still limited relative to demand, the market is still moving at a fast pace, and 32% of homes sold above list price, down from 39% a month ago and 45% a year ago: 81% of respondents reported properties sold in less than one month. Down from 82% a month ago and down from 87% in August 2021. Homes listed received an average of 2.5 offers, down from 2.8 offers in July 2022 and 3.8 in August 2021. Due to the lack of house 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 virtually unchanged from one month and one year ago. Contracts typically closed in 30 days, the same as August 2022 and one year ago. But some faced delays or termination: 5% of contracts were terminated in the last three months, about the same as one month and one year ago. 15% of contracts had delayed settlements in the past three months, compared to 17% in July 2022 and 23% a year ago. 8% of contracts had delayed settlement due to appraisal issues, slightly down from 11% last month and 12% one year ago. First-time buyers represented 29% of buyers, virtually unchanged from one year ago and one month ago. Among buyers: 16% are purchased for non-primary residence use, up slightly from 14% last month and 15% one year ago. 7% were for vacation use, up from 5% last month and down slightly from 6% one year ago. 2% of sellers sold to an iBuyer, unchanged from one month and one year ago. One percent of sales were distressed, similar to one month and one year ago. Contract activity remains competitive: 24% of buyers were all-cash sales, unchanged from last month and up from 22% in August 2021. 22% of buyers waived the inspection contingency, down from 27% a month ago but similar to the share one year ago. 21% of buyers waived the appraisal contingency, down from 27% a month ago and 25% a year ago. Buyers continue to look outside of city centers for the majority of their activity: 87% of buyers purchased in a suburb, small town, rural, or resort area, about the same as last month and one year ago.