Real Estate Market Trends – May 2023

July 2, 2023

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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