Buyers Are Lining Up To Purchase a House

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Demand continues to outpace supply. On average, respondents reported four buyer home tours during the month compared to an average of 1.4 listings during the month.

Buyer competition remained intense, with respondents reporting an average of 4.8 offers for every home sold (4.8 in the prior month, 4.8 one year ago). Fifty-seven percent of buyers’ price offers were above the list price (48% in the prior month). Half of the buyers had made at least two prior offers and lost before succeeding on the third try.

With homebuying demand still outpacing supply, properties typically stayed on the market for shorter days compared to one year ago, at 17 days (18 days in the prior month, 18 days one year ago). Eighty-seven percent of listings were on the market for less than one month (84% in the prior month, 83% one year ago).

The share of first-time buyers slightly increased to 30% although the share was below the level one year ago (29% in the prior month; 32% one year ago). The expectation of further mortgage rate increases could have encouraged buyers to lock in at the current low rates.

The share of non-primary residence buyers (for investment rental or vacation use) slightly decreased to 18% due to fewer investor buyers, but the share was higher than the level one year ago (19% in the prior month, 15% one year ago). Vacation home sales made up 7% of the market (5% from the prior month, 6% one year ago).

Cash buyers continued to make up a higher market share, at 28% (25% in the prior month; 23% one year ago). Of mortgage-financed sales reported by REALTORS®, mortgages insured by the Federal Housing Agency accounted for 12% of mortgages (13% one year ago), while loans from the Veteran Affairs made up 7% (9% one year ago).