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May 2017

REALTORS CONFIDENCE INDEX SURVEY

Research Division
NATIONAL ASSOCIATION of REALTORS

May 2017 REALTORS CONFIDENCE INDEX SURVEY


About the RCI Survey

The RCI Survey gathers information from REALTORS about


local market conditions based on their client interactions and
the characteristics of their most recent sales for the month.
The May 2017 survey was sent to 75,000 REALTORS who
were selected through simple random sampling and to 8,330
respondents in the previous three surveys who provided
their email addresses.
There were 3,555 respondents to the online survey, 2,175 of
which closed a sale. The survey ran from June 212, 2017.
NAR weights the responses by a factor that aligns the sample
distribution of responses to the distribution of NAR
membership.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


May 2017 Highlights
May 2017 REALTORS Confidence Index Survey Highlights

May-17 Apr-17 May-16

RCI Buyer Traffic Index* 74 75 69

RCI Seller Traffic Index* 46 46 48

RCI Current Conditions: Single-Family Sales* 76 77 74

RCI Six-Month Outlook: Single-Family Sales* 76 82 75

First-Time Home Buyers, as Percent of Sales 33 34 30

Cash Sales, as Percent of Sales 22 21 22

Distressed Sales, as Percent of Sales 5 5 6

Sales for Non-primary Residence Use, as Percent of Sales** 16 15 13


Median Days on Market 27 29 32

Sold at Original List Price or Premium, as Percent of Sales 40 39 38

Median Expected Price Growth in Next 12 Months (%) 3.7 3.4 3.6
*This is a diffusion index. An index greater than 50 indicates strong conditions and an index less than 50 indicates weak conditions.
**Non- primary residence use refers to the primary use of the property for either vacation or residential rental.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


I. Market Conditions and Expectations

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Market Conditions Remained Strong

The REALTORS Confidence REALTORS Confidence IndexCurrent Conditions


IndexCurrent Conditions as of May 2017
indices for detached
single-family, townhome,
90
and condominium 80
76
properties were above 50, 70
indicating more 60 62

respondents reported 50 57
40
strong than weak
30
market conditions in May 20
2017 compared to the 10
same month last year (74 0
200801
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for detached single-family,
55 for townhome, and 51
for condominium in May
2016).
Single-family Townhome Condominium

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Buyer Traffic Remained Strong While Seller
Traffic Remained Weak
REALTORS Buyer and Seller Traffic Indexes
Demand continued to as of May 2017
outpace supply in May
2017.
80
The REALTORS Buyer 74
70
Traffic Index registered
at 74, while the 60

REALTORS Seller Traffic 50


46
Index remained below 40
50. An index below 50
30
reflects tight supply of
homes for sale. 20
200801
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Buyer Traffic Index Seller Traffic Index

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Homebuying Demand Stood Strong

Compared to
conditions in the
same month last year,
buyer traffic
conditions were
stable (no change in
conditions) to very
strong in all states.

*For graphical purposes, index values less than or equal to 25 are labeled Very Weak, values of
25.01 to 45 are labeled Weak, values of 45.01 to 55 are labeled Stable, values of 55.01 to
75 are labeled Strong, and values greater than 75 are labeled Very Strong.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Inventory Remained Tight

Compared to
conditions in the same
month last year, seller
traffic conditions were
weak in 24 states,
stable in 25 states,
and strong in the
District of Columbia
and West Virginia.

*For graphical purposes, index values less than or equal to 25 are labeled Very Weak, values of
25.01 to 45 are labeled Weak, values of 45.01 to 55 are labeled Stable, values of 55.01 to
75 are labeled Strong, and values greater than 75 are labeled Very Strong.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Days on Market Continued To Fall

Median Days on Market of Sales Reported by


Amid tight supply, REALTOR Respondents as of May 2017
properties sold
nationally in May 2017 250
were typically on the All: 27 Foreclosed: 48 Short sale: 94 Non-distressed: 27
200
market for 27 days (29
days in April 2017; 32 150

days in May 2016). 100

Fifty-five percent of
50
properties were on the
market for less than one 0
201105
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month when sold,
compared to 49 percent
a year ago.
All Foreclosed Short sale Non-distressed

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Short Median Days on Market

Properties that sold in


MarchMay 2017
were typically on the
market for less than
31 days in 24 states
and the District of
Columbia.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Median Days on Market Trended Down in
the West and Midwest
Median Days on Market of Sales Reported by Median Days on Market of Sales Reported by
REALTORS in Selected West States REALTORS in Selected Midwest States

120
180
100 160
AZ 140 IL
80
120
60 CA MI
100
40 CO 80
OH
60
20
WA
40 WI
0
20
201103-201105
201107-201109
201111-201201
201203-201205
201207-201209
201211-201301
201303-201305
201307-201309
201401-201403
201405-201407
201409-201411
201501-201503
201505-201507
201509-201511
201601-201603
201605-201607
201609-201611
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0

201103-201105
201107-201109
201111-201201
201203-201205
201207-201209
201211-201301
201303-201305
201307-201309
201401-201403
201405-201407
201409-201411
201501-201503
201505-201507
201509-201511
201601-201603
201605-201607
201609-201611
201701-201703
*To increase the number of observations for each state, NAR uses data from the last three surveys. The selected states shown in these charts are those with
approximately 150 observations.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Median Days on Market Trended Down in
the South and Northeast
Median Days on Market of Sales Reported by Median Days on Market of Sales Reported by
REALTORS in Selected South States REALTORS in Selected Northeast States

180 160
160 140
140 120
120 MA
FL 100
100
80 NJ
80 GA
60
60
NY
40 NC 40

20 20 PA
VA
0 0
201103-201105
201107-201109
201111-201201
201203-201205
201207-201209
201211-201301
201303-201305
201307-201309
201401-201403
201405-201407
201409-201411
201501-201503
201505-201507
201509-201511
201601-201603
201605-201607
201609-201611
201701-201703

201103-201105
201107-201109
201111-201201
201203-201205
201207-201209
201211-201301
201303-201305
201307-201309
201401-201403
201405-201407
201409-201411
201501-201503
201505-201507
201509-201511
201601-201603
201605-201607
201609-201611
201701-201703
TX

*To increase the number of observations for each state, NAR uses data from the last three surveys. The selected states shown in these charts are those with
approximately 150 observations.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Home Prices Continued to Increase

Percentage Distribution of Price Change from a Year Ago Reported by


Amid tight supply, REALTOR Respondents as of May 2017
home prices
continued to increase
90%
in many areas. 80%
77%
Ninety percent of 70%
60%
respondents reported
50%
that home prices 40%
either remained 30%
constant or rose in 20% 13%
May 2017 compared 10%
10%
0%
to one year ago (82
201203
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percent in April 2017,
88 percent in May
2016).
Higher Lower Unchanged

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Properties Sold Above Listing Price

Percent of Properties Sold at Original Price or at Net Premium from


Because conditions are the Listing Price as of May 2017
competitive for buyers 45%
and supply is tight, offers 40%
continued to be high 40%
relative to asking price.
Forty percent of
properties sold at or 35%
above the original listing
price (39 percent in 30%
April 2017; 38 percent in
May 2016).
25%

20%

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Seasonal Home Tours Increased

Average Number of Clients Went on Home Tours by Agent as of May 2017


On average, REALTOR 6.0
respondents took about
5.1
five clients on a home 5.0 4.7 4.7 4.7 4.8
5.0
4.8
4.6
tour in May 2017, about 4.2
4.4 4.4 4.4 4.4 4.3 4.3 4.3
4.1
the same as one year 4.0
ago.
The number of clients 3.0

that went on a home


tour tends to increase 2.0

during the spring and


summer months. 1.0

0.0
201601

201602

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May 2017 REALTORS CONFIDENCE INDEX SURVEY
Home Tours Led to Client Offers

Average Number of Offers Written Per Client After a Home Tour*


On average, REALTOR
respondents wrote
nearly two offers per
3.0 2.8
client they took on a
2.5 2.5 2.5 2.5 2.5
home tour, about the 2.5
2.2
2.4 2.4
2.4 2.3 2.3
2.2 2.2
2.3
2.2
same as the same month 2.1
2.0 1.9
last year. 1.7
1.6
1.5

1.0

0.5

0.0
201510

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201512

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*Regardless of acceptance

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Homebuyer Search Price Increases

Amid tight inventory Median Search Price of Typical Buyer


conditions and $260,000

increasing buyer $253,000

competition, the $250,000

median search price


among clients increased $240,000 $245,300
to $253,000 in May
2017, an increase of $230,000
three percent from the
median search price $220,000
one year ago.
$210,000

$200,000
201510

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May 2017 REALTORS CONFIDENCE INDEX SURVEY
Buyers Offer Price Increased

Buyer's Offers Compared to Asking Price


The share of buyers 100%
that offered a price
90%
below the sellers
asking price was 46 80%
46%
percent. 70% 60%
55% 54% 56% 57% 59% 60% 57%
53% 53%
65% 63% 64% 63% 61%
The share of buyers
60%
offering at or above the
asking price rose to 21 50%
percent in May 2017 40%
33%
from 12 percent in 28% 29% 27%
30% 28% 27%
February 2016 when 26% 29%
28% 27%
26% 28%
30%
23% 26% 26%
NAR tracked this 20%
indicator. Low supply 10% 20% 21%
17% 18% 17% 19%
compared to high 12% 14% 14% 12% 13% 11% 10% 10% 11% 14%

demand likely 0%

accounted for this


trend. Above Asking Price At AskingPrice Below Asking Price

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Home Prices Expected to Increase
REALTOR respondents
expected strong price
growth in Washington,
Montana, Utah, and
Colorado of five to
seven percent.
Respondents expected
prices to remain stable
or increase modestly in
states that are more
reliant on oil production
(e.g., Alaska, North
Dakota, Wyoming,
Oklahoma, Louisiana, and
Mississippi) and in
Connecticut and
Vermont.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Expected Price Changes in the West and
Midwest: About the Same Pace Last Year
REALTORS Median Expected Price Change REALTORS Median Expected Price Change
Over the Next 12 Months in Selected West Over the Next 12 Months in Selected
States Midwest States

9.0
7.0
8.0
6.0
7.0 CA
6.0 5.0
5.0 OR
4.0
4.0
WA 3.0
3.0
2.0 2.0 IL
AZ
1.0 MI
1.0
0.0 OH
CO
0.0
Apr2013-Jun2013

Apr2014-Jun2014

Apr2015-Jun2015

Apr2016-Jun2016
Oct2012-Dec2012

Oct2013-Dec2013

Oct2014-Dec2014

Oct2015-Dec2015

Oct2016-Dec2016
Jul2013-Sep2013

Jul2014-Sep2014

Jul2015-Sep2015

Jul2016-Sep2016
Jan2013-Mar2013

Jan2014-Mar2014

Jan2015-Mar2015

Jan2016-Mar2016

Jan2017-Mar2017

WI

Oct2012-Dec2012

Apr2013-Jun2013

Oct2013-Dec2013

Apr2014-Jun2014

Oct2014-Dec2014

Apr2015-Jun2015

Oct2015-Dec2015

Apr2016-Jun2016

Oct2016-Dec2016
Jan2013-Mar2013

Jul2013-Sep2013

Jan2014-Mar2014

Jul2014-Sep2014

Jan2015-Mar2015

Jul2015-Sep2015

Jan2016-Mar2016

Jul2016-Sep2016

Jan2017-Mar2017
*To increase the number of observations for each state, NAR uses data from the last three surveys. The selected states shown in these charts are those with
approximately 150 observations.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Expected Price Changes in the South and
Northeast: About the Same Pace Last Year
REALTORS Median Expected Price Change REALTORS Median Expected Price Change
Over the Next 12 Months in Selected South Over the Next 12 Months in Selected
States Northeast States

8.0 5.0

7.0
4.0
6.0

5.0 3.0
4.0 FL
2.0
3.0 GA
MA
2.0 NC
1.0 NJ
1.0 SC
NY
0.0 TN 0.0
PA
Oct2012-Dec2012

Apr2013-Jun2013

Oct2013-Dec2013

Apr2014-Jun2014

Oct2014-Dec2014

Apr2015-Jun2015

Oct2015-Dec2015

Apr2016-Jun2016

Oct2016-Dec2016

Oct2012-Dec2012

Apr2013-Jun2013

Oct2013-Dec2013

Apr2014-Jun2014

Oct2014-Dec2014

Apr2015-Jun2015

Oct2015-Dec2015

Apr2016-Jun2016

Oct2016-Dec2016
Jan2013-Mar2013

Jul2013-Sep2013

Jan2014-Mar2014

Jul2014-Sep2014

Jan2015-Mar2015

Jul2015-Sep2015

Jan2016-Mar2016

Jul2016-Sep2016

Jan2017-Mar2017

Jan2013-Mar2013

Jul2013-Sep2013

Jan2014-Mar2014

Jul2014-Sep2014

Jan2015-Mar2015

Jul2015-Sep2015

Jan2016-Mar2016

Jul2016-Sep2016

Jan2017-Mar2017
VA
TX

*To increase the number of observations for each state, NAR uses data from the last three surveys. The selected states shown in these charts are those with
approximately 150 observations.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Strong Markets Expected in Six Months
The REALTORS Confidence
IndexSixMonth Outlook REALTORS Confidence IndexSix-Month Outlook
as of May 2017
Current Conditions indices
for detached single-family,
townhome, and 90

condominium properties 80 76
70
were above 50, indicating 60 62
more respondents 50
58
expected conditions to 40
strengthen rather than 30

weaken over the next six 20


10
months compared to
0
current conditions (75 for
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detached single-family, 57
for townhome, and 52 for
condominium in May
2016).
Single-family Townhome Condominium

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Very Strong Six-Month Outlook for Single-
Family Homes

Compared to current
conditions, REALTOR
respondents expected
the outlook over the
next six months for
detached single-family
properties to be
stable to very
strong in all states
and the District of
Columbia.

*For graphical purposes, index values less than or equal to 25 are labeled Very Weak, values of
25.01 to 45 are labeled Weak, values of 45.01 to 55 are labeled Stable, values of 55.01 to
75 are labeled Strong, and values greater than 75 are labeled Very Strong.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Mixed Six-Month Outlook for Townhomes
Compared to current
conditions, REALTOR
respondents expected
the outlook over the
six months for
townhome properties
to be weak to very
strong.
Respondents in
Washington, Oregon,
Nevada, Utah,
Colorado, Montana,
South Dakota, and
Nebraska expected
the outlook to be
very strong.

*For graphical purposes, index values less than or equal to 25 are labeled Very Weak, values of 25.01 to 45 are
labeled Weak, values of 45.01 to 55 are labeled Stable, values of 55.01 to 75 are labeled Strong, and values
greater than 75 are labeled Very Strong.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Mixed Six-Month Outlook for
Condominiums
Compared to current
conditions, REALTOR
respondents expected
the outlook over the
six months for
condominium
properties to be very
weak to very strong.
Respondents in
Washington, Nevada,
Utah, Colorado, and
Vermont had very
strong outlooks.

*For graphical purposes, index values less than or equal to 25 are labeled Very Weak, values of 25.01
to 45 are labeled Weak, values of 45.01 to 55 are labeled Stable, values of 55.01 to 75 are
labeled Strong, and values greater than 75 are labeled Very Strong.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


II. Characteristics of Buyers and Sellers*

* Based on the respondents most recent sale for the month.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


First-Time Homebuyers on Modest Uptrend
from One Year Ago
Of all buyers, 33
percent were first-
First-Time Buyers as Percent of Residential Market as of May 2017
time buyers (34
percent in April 2017;
30 percent in May
60%
2016).
Sustained job growth, 50%

improving incomes, 40%


and the aging of the 33%

Millennial generation 30%

are likely underpinning 20%


the continued, albeit
modest, increase in 10%

first-time buyers.
0%
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NARs 2016 Profile of Home Buyer and Sellers (HBS) reports that among primary residence home buyers, 35 percent were first-time home buyers, up
from 32 percent in 2015. The HBS surveys primary residence home buyers, while the monthly RCI Survey surveys REALTORS and captures purchases
for investment purposes and vacation/second homes.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Increased Sales: Buyers 35 to 55 Years

Age Distribution of Buyers for Sales Reported by


Home sales increased REALTOR Respondents as of May 2017

to 51 percent for
60%
buyers aged 35 to 55, 52%
51%
up from 47 percent last 50%

month. 40%
26%
Home sales decreased 30% 29%

for buyers 34 years and 20%


22%
20%

younger to 29 percent, 10%

but was up from 26 0%

11

13

15

17

19

21

23

25

27

29

31

33

35

37

39
1

9
percent in July 2013
when the RCI Survey
first asked the
question.*
Age 34 and under Age 35 to 55 Age 56 and over

*NARs 2016 Profile of Home Buyer and Sellers (HBS) reports that among primary residence home buyers, 28 percent were 18-34 years old.
The HBS surveys primary residence home buyers, while the monthly RCI Survey surveys REALTORS and captures purchases for investment
purposes and vacation/second homes.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Renters: Largest Group of Homebuyers

Homebuyers who Living Status of Homebuyers at Time of Home Purchase

were renting prior to


60%
their recent home
50%
purchase accounted 44% 44%
40%
for 44 percent of 41% 41%
30%
sales in May 2017.*
20%
Homebuyers who 10%
10%
11%

lived in a property 0%
5% 5%

they owned
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accounted for a
smaller share at 41
percent. Rented an apartment or house Lived in a property that they owned

Lived with parents, relatives, or friends Other

NARs 2016 Profile of Home Buyer and Sellers (HBS) reports that among primary residence home buyers, 41 percent rented an apartment or house prior to
their home purchase. The HBS surveys primary residence home buyers, while the monthly RCI Survey surveys REALTORS and captures purchases for investment
purposes and vacation/second homes.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Seasonal Non-Primary Residence Sales
Grew
Sales for Non-Primary Residence* Use as a Percent of Residential Sales
Sixteen percent of all as of May 2017
sales were non-primary
residences (residential 19%
rental or vacation use). 17%
16%
15%

13%

11%

9%

7%

5%
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*Non-primary residence sales refer to vacation or residential rental use. Respondents are asked to identify the primary use of the property: primary
residence, vacation home, investment as a residential rental unit.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Distressed Properties Sales Have Declined

Distressed Sales as Percent of Residential Sales


Distressed sales as of May 2017
accounted for five
percent of sales in May 60%

2017 (five percent in 50%


Foreclosed: 4% Short sale: 1%
April 2017; six percent
40%
in May 2016).
30%
With rising home values,
improved economic 20%
conditions, and fewer
10%
foreclosures, the share
of sales of distressed 0%
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properties has generally
declined.
Foreclosed Short sale

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Cash Sales Have Declined

Cash Sales as Percent of Residential Sales as of May 2017


Twenty-two percent of
40%
sales were all-cash (21
percent in April 2017; 35%
22 percent in May
30%
2016).
25%
As sales to investors 22%

and distressed 20%


properties have fallen,
15%
the share of cash sales
has declined compared 10%

to 2009-2014 levels.
5%

0%
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May 2017 REALTORS CONFIDENCE INDEX SURVEY
Investors Topped List of Cash Buyers

Percent of All-Cash Sales Across Types of Buyer


Buyers of homes for in May 2017
investment purposes,
distressed sales, second 70%
64%
homes, and foreign 60%
53%
clients were more 49%
50%
likely to pay cash than
39%
first-time homebuyers. 40%

30%

20%
10%
10% 5%

0%
Investor Distressed Sale Second Home International Relocation First-time Buyer

*The RCI survey captures only non-U.S. citizens whose permanent residence is in another country (Type A). NAR has a
separate survey on foreign buyers that captures both Type A buyers and non-U.S. citizens who reside in the United States
on work, student, or other types of visas (Type B).

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Low Downpayment for First-Time Buyers

Percent of Non-Cash Buyers Who Put Down Less Than 20 Percent for
Among first-time Downpayment
homebuyers who 85%

obtained a mortgage 80% 77%


and whose transactions
75%
closed in MarchMay
2017, 71 percent put 70% 71%

down less than 20 65%


percent for
60%
downpayment.
55% 58%
Among all buyers 54%

whose transactions 50%

closed in May 2017, 54 45%

percent put down less 40%


than 20 percent for
201106
201108
201110
201112
201202
201204
201206
201208
201210
201212
201302
201304
201306
201308
201310
201312
201402
201404
201406
201408
201410
201412
201502
201504
201506
201508
201510
201512
201602
201604
201606
201608
201610
201612
201702
201704
downpayment.
First-time Buyers All Buyers

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Fewer First-Time Buyers Made Low
Downpayment
Sixty percent of non-
cash first-time buyers First-time Buyers Who Put Down 0 to Six Percent Downpayment as a
Percent of Non-Cash Buyers
made a zero to six 75%
percent downpayment, 73%

down from the peak of


73 percent in 70%

September 2009 since


the RCI Survey tracked
65%
this indicator in 2009.
NARs 2016 Q3 HOME
Survey* found that only 60%
60%
13 percent of those
aged 34 or under 55%
believe they need a
downpayment of five
percent or less. 50%
200906
200909
201002
201005
201008
201011
201102
201105
201108
201111
201202
201205
201208
201211
201302
201305
201308
201311
201402
201405
201408
201411
201502
201505
201508
201511
201602
201605
201608
201611
201702
201705
*Home Opportunities and Market Experience (HOME) Survey

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Home Inspection Topped Buyer
Contingency List
Contract Settlement Contingencies Reported by Buyer's Agents, as a Percent
Seventy-nine percent of Sales
(Multiple Responses Allowed)
of agents who worked 50%
with buyers reported 45% 43%
contract contingencies 40%
for their most recent 35%
34%
32%
sale in May 2017.
30%
Passing a home 25%
inspection, obtaining 20% 17%
financing, and having 15%
the right appraisal 10%
10%

were the most 5%


5% 4% 3%
common buyer
0%
contingencies reported
in May 2017.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Rents Continued to Increase

Percent of REALTORS Who Conducted an Apartment Rental Transaction


Among REALTOR and Who Reported Rising Rents
75%
respondents who
conducted an
70%
apartment rental
65%
transaction, 65 percent 65%
reported rising rents,
essentially unchanged 60%
since the RCI Survey
tracked this indicator in 55%
2010.
Tight supply of homes 50%
for sale and lack of new
45%
construction led to
rising home prices and 40%
rents.
201012
201102
201104
201106
201108
201110
201112
201202
201204
201206
201208
201210
201212
201302
201304
201306
201308
201310
201312
201402
201404
201406
201408
201410
201412
201502
201504
201506
201508
201510
201512
201602
201604
201606
201608
201610
201612
201702
201704
May 2017 REALTORS CONFIDENCE INDEX SURVEY
Sellers: 65 Years And Older

Seller's Age
Sellers 65 years old 35%

and older (30


percent) and 45 to 55 30% 30%

years (25 percent)


25% 25%
comprised the bulk of
home sellers. 20%

17%
15% 17%

10% 10%

5%

0%
201510

201511

201512

201601

201602

201603

201604

201605

201606

201607

201608

201609

201610

201611

201612

201701

201702

201703

201704

201705
Age 34 and under Age 35 to 44 Age 45 to 55 Age 56 to 64 Age 65 and over

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Sellers Use of Property

Seller's Use of Property


Most sellers used the
property as a primary 100%
6% 7% 7% 7% 8% 9% 8% 7% 7% 5%
residence. 90%
19% 18% 19% 18% 20%
80% 21% 22% 23% 23% 23%
Twenty percent of 70% 6% 6% 6% 6% 5%
sellers who sold a 60%
5% 6% 6% 6% 6%

property in May 2017 50%


used the property for 40%
69% 68% 67% 69% 68%
investment purpose. 30% 64% 62% 62% 63% 63%

20%
10%
0%
201608

201609

201610

201611

201612

201701

201702

201703

201704

201705
Primary Vacation Investment Property, Primarily to Rent Other* Dont Know*

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Most Sellers Vacated Property After
Contract Was Accepted
When Seller Vacated Property

For sales that closed in


May 2017, half of sellers 100%
6% 6%
Don't Know

vacated the property 90% 3% 3%


5%
8% More than 6 Months Before Listing
between contract 80% 7%
7%

acceptance and closing. 70% 8%


8%
3-6 Months Before Listing
Twenty percent vacated 60%

the property after 50% 2 to 3 Months Before Listing


closing under leaseback 40%
49% 50%

terms. Within 1 Month Before Listing


30%

20%
Between Listing and Contract
Acceptance
10% 18% 20%

0% Between Contract Acceptance and


201704 201705 Closing

After Closing (Leaseback)

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Three-Offer Average for Sellers

Average Number of Offers Received on the Most Recent Closed Sale


Sellers who closed a 2.8

sale in May 2017


2.6
received nearly three 2.6

offers on average, 2.4 2.6

about the same as


2.2
one year ago.
The number of offers 2.0

tends to increase 1.8


2.1

during the spring and


summer months. 1.6

1.4

1.2

1.0
201510

201511

201512

201601

201602

201603

201604

201605

201606

201607

201608

201609

201610

201611

201612

201701

201702

201703

201704

201705
May 2017 REALTORS CONFIDENCE INDEX SURVEY
Sellers Offered Few Incentives

Type of Seller Incentive Offered for Sales that Closed in May 2017
Twenty percent of
sellers reported
90.0%
offering incentives. 80.6%
80.0%
Warranty and
70.0%
assistance with closing
60.0%
costs were the most
common incentives 50.0%

offered by sellers. 40.0%

30.0%

20.0%
8.3% 8.1%
10.0%
2.9% 2.1%
0.4% 0.2%
0.0%
No incentive Closing Cost Condo Fees Warranty Remodelling Appliances Other

May 2017 REALTORS CONFIDENCE INDEX SURVEY


III. Contract Settlement Issues *

* Based on the respondents most recent sale for the month.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Closing Times Quickened

Average and Median Days to Close a Sale


The median days to
close a contract was 48
35 days (35 days in 46
April 2017; 40 days in 44
May 2016). 42

40

38
37
36
35
34

32

30
201507
201508
201509
201510
201511
201512
201601
201602
201603
201604
201605
201606
201607
201608
201609
201610
201611
201612
201701
201702
201703
201704
201705
Average Median

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Most Contracts Settled on Time

Contract Settlement
Seventy-six percent 100% 2%
of contracts were 90%
22%
settled on time, 22 80%
percent had a delayed 70%

settlement, and two 60%

percent were 50%

terminated. 40% 76%


30%

20%

10%

0%

Contract was terminated


Contract was delayed but eventually went into settlement
Contract was settled on time

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Financing and Appraisals Topped List of
Delays
Problems Encountered for Contracts That Were Delayed in
Issues related to MarchMay 2017*
(Delayed Contracts Represent 22 Percent of Closed or Terminated Contracts)
obtaining financing and
35% 33%
appraisal were the most
common causes of 30%
24%
contract settlement 25%

delays. 20%
19%

15% 12%
9% 8%
10% 7%
5% 3%
1%
0%
0%

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Financing and Appraisal Delays Increase

Percent of Contracts with Delayed Settlement Which Had Issues


While obtaining Related to Obtaining Financing and Appraisal
financing was still the
50%
top cause of delay, the
45% 40%
issue was cited by
40%
fewer respondents
35%
than when NAR first 33%
30%
tracked this indicator.
25%
By contrast, appraisal 24%
20%
issues were more
15% 18%
common than in 2015.
10%

5%

0%

Appraisal Issues Issues Related to Obtaining Financing

May 2017 REALTORS CONFIDENCE INDEX SURVEY


REALTOR Concern Over Low Inventory

REALTOR respondents
identified low
inventory , multiple
offer, shortage, and
mortgage issues,
indicating that tight
inventory and finance
were major issues
affecting homebuying and
selling.

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Research Division
National Association of REALTORS

Lawrence Yun, Senior Vice President and Chief Economist


Danielle Hale, Managing Director, Housing Research
Gay Cororaton, Research Economist
Meredith Dunn, Research Communications Manager

The Research team acknowledges Jessica Lautz, Managing Director, Survey


Research and Communications, Amanda Riggs, Research Survey Analyst, and
Brandi Snowden, Research Survey Analyst, for their inputs in improving the
survey and in editing and disseminating the report. Karen Belita, Data Scientist,
created the visualization of REALTOR comments. Acknowledgement goes to
Lisa Herceg, Director, Marketing Research, who sends out the survey to
members.

For questions on this report or to purchase the RCI series, please email:
dhale@realtors.org

May 2017 REALTORS CONFIDENCE INDEX SURVEY


Research Division
National Association of REALTORS

To find out about other products from NARs


Research Division, visit:
https://www.nar.realtor/research-and-statistics

Also follow NAR Research on:


https://twitter.com/nar_research
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https://instagram.com/narresearch/

May 2017 REALTORS CONFIDENCE INDEX SURVEY


The National Association of REALTORS, The Voice for Real Estate, is Americas largest trade association, representing 1.2 million
members, including NARs institutes, societies and councils, involved in all aspects of the real estate industry. NAR membership includes
brokers, salespeople, property managers, appraisers, counselors and others engaged in both residential and commercial real estate.
The term REALTOR is a registered collective membership mark that identifies a real estate professional who is a member of the National
Association of REALTORS and subscribes to its strict Code of Ethics.
Working for Americas property owners, the National Association provides a facility for professional development, research and exchange of
information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to
own real property.

NATIONAL ASSOCIATION OF REALTORS


RESEARCH DIVISION
The Mission of the National Association of REALTORS Research Division is to collect and disseminate timely, accurate and comprehensive
real estate data and to conduct economic analysis in order to inform and engage members, consumers, and policymakers and the media in a
professional and accessible manner.

NATIONAL ASSOCIATION OF REALTORS


Research Division
500 New Jersey Avenue, NW
Washington, DC 20001
202-383-1000
data@realtors.org

2017 National Association of REALTORS


All Rights Reserved.
May not be reprinted in whole or in part without permission of the National Association of REALTORS .
For reprint information, contact data@realtors.org.

May 2017 REALTORS CONFIDENCE


INDEX SURVEY
May 2017
REALTORS CONFIDENCE INDEX SURVEY

Research Division
NATIONAL ASSOCIATION of REALTORS

May 2017 REALTORS CONFIDENCE


INDEX SURVEY