BAM Key Details:
- NAR released the results of their November 2022 REALTORS® Confidence Index (RCI) survey with key insights on market transactions.
- The most notable differences appear in the number of offers received and the share of homes that sold in under a month or for more than the listing price.
NAR released the results of their November REALTORS® Confidence Index (RCI) survey, sharing key insights on housing market transactions.
The survey results show little change in the percentages of first-time home buyers and all-cash purchases. More notable differences appeared in the number of offers received and the share of homes that sold in under a month, compared to a year ago.
Here’s a closer look at the highlights.
Highlights of the survey results
The survey yielded the following seven key insights into the 2022 housing market.
#1: First-time home buyers
Almost unchanged from the previous month, 28% of home buyers in November 2022 were first-time buyers—up slightly from November 2021.
#2: Non-primary use home purchases
Speaking of the total homes purchased—
- 14% were for non-primary residence use
- 4% were for vacation use
- 2% were sold to an iBuyer
- 2% were distressed—roughly the same as one month and one year ago
#3: All-cash Sales
Also holding steady month-to-month were all-cash purchases, representing 26% of all buyers—up from 24% in November 2021.
#4: Contingency waivers
Twenty-two percent of buyers waived the inspection contingency, slightly more than one month and one year ago. And 16% waived the appraisal, down from 18% a month prior and from 21% a year ago.
#5: Housing Supply
Inventory is still limited relative to demand, so homes continue to move fairly quickly, with 23% selling above the list price, compared to 24% the previous month—and 40% a year ago.
Compared to 64% a month ago, 61% of survey respondents saw properties selling in less than one month—down from 83% in November 2021.
Listed homes received an average of 2.3 offers—just a smidge below the 2.4 for October 2022 and further down from 3.8 a year ago.
Finally, buyers continue to look outside bustling city centers for homes, with 88% purchasing in a suburb, small town, rural area or resort.
So, what does this mean for Realtor® confidence?
Overall, 9% of survey respondents expect a year-over-year uptick in buyer traffic in the next three months—compared to 6% in October 2022 and 35% in November 2021.
As for seller traffic, 8% of respondents expect year-over-year growth in the next three months—compared to 7% in October 2022 and 23% in November 2021.
Top takeaways for real estate agents
We may see fewer home sales around the median price point in 2023, at least for the first half, but homes are still selling.
Because ultimately, the buyers and sellers motivated to transact are looking less at mortgage rates and housing prices than their personal motivation to find a home that meets their needs and as many of their wants as possible.
Stay on top of trends and money-saving advantages for the buyers and homeowners in your market—and keep your prospects and clients in the loop. Let them know you’re always ready to help them get the most benefit from buying or selling their home.