Persistent Low Inventory Keeps Prices Rising

The REALTORS® Confidence Index is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners. The latest data reported 61% of respondents indicating prices were higher than a year ago, and 37% of homes were selling at the original list price, or for a higher net price. This indicates demand is still outpacing supply of homes. Which means buyers will still have to compete for the best homes in the most desirable areas.

Characteristics of Buyers

• Buyer aged 35 to 55 made up 49% of buyers.
• 31% of buyers were first time buyers.
• 19% paid cash.
• 42% were living in a rental dwelling before purchase.
• 41% were living in a home they owned before purchase.
• Purchased with less than 20 percent down payment; 71% first time buyers, and 52% all buyers.

Characteristics of Sellers

• Average number of offers received 2.3.
• 69% sold primary residence.
• 19% sold investment property.
• 44% age 35-55.
• 42% 56 and over.
• 21% of sellers offered some incentive such as closing costs, warranty, or remodeling.

Problems Encountered for Contracts with Delayed Settlements

• Financing 37%
• Appraisal 18%
• Home Inspection 16%

Note: Despite these macro trends, our local market will experience a seasonal 4th quarter slow down in buyer activity. This will force sellers to compete for the limited number of buyers available and will temporarily create favorable market conditions for buyers. When we reach the first quarter of 2020 the conditions will swing back to favor sellers.

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