REALTORS®CONFIDENCE INDEX SURVEY February 2018

The REALTORS®Confidence Index (RCI) survey gathers monthly information from REALTORS®about local real estate market conditions, characteristics of buyers and sellers, and issues affecting home-ownership and real estate transactions. This report presents key results about market transactions from February 2018. 

Market Conditions and Expectations

• The REALTORS®Buyer Traffic Index registered at 70 (70 in February 2017).
• The REALTORS®Seller Traffic Index registered at 44 (41 in February 2017).
• The REALTORS®Confidence Index—Six-Month Outlook Current Conditions registered at 74 for detached single-family, 62 for townhome, and 58 for condominium properties. An index above 50 indicates market conditions are expected to improve.
• Properties were typically on the market for 37 days (45 days in February 2017).
• Eighty-eight percent of respondents reported that home prices remained constant or rose in February 2018 compared to levels one year ago (90 percent in February 2017).

Characteristics of Buyers and Sellers

• First-time buyers accounted for 29 percent of sales (32 percent in February 2017).
• Vacation and investment buyers comprised 15 percent of sales (15 percent in February 2017).
• Sales of distressed properties (foreclosed or sold as a short sale) accounted for four percent of sales (seven percent in February 2017).
• Cash sales made up 24 percent of sales (27 percent in February 2017).
• Twenty-one percent of sellers offered incentives such as paying for closing costs (nine percent), providing a warranty (nine percent), undertaking remodeling (three percent), and providing appliances (one percent).

Issues Affecting Buyers and Sellers

• From December 2017–February 2018, 76 percent of contracts settled on time (70 percent in February 2017).
• Among sales that closed in February 2018, 76 percent had contract contingencies. The most common contingencies pertained to home inspection (58 percent), getting an acceptable appraisal (44 percent), and obtaining financing (44 percent).
• REALTORS® report “low inventory” and “interest rate” as the major issues affecting transactions in February 2018.