Monthly, the National Association of REALTORS® surveys 500,000 of its members for an “out in the field” look at the strength of the housing market. Here are NAR’s latest findings for January 2019:
Issues Affecting Buyers and Sellers
- 73% of all contracts settled on time compared with 75% in January 2018.
- 73% of all contracts had contingencies such as…
- 55% – home inspections
- 45% – obtaining financing
- 44% – obtaining an appraisal
- Interest rate uncertainties caused both buyers and sellers to pause concerning their decisions to buy and/or sell.
- Low inventories, particularly in lower tiered markets, caused both buyers and sellers (from first-time buyers to downsizing sellers) to simply stay where they were currently living.
- Average Days On the Market (DOM) were 49 days in January 2019 compared with 42 days in January 2018.
- 21% of all sellers offered incentives to their buyers.
- 10% of sellers paid closing costs.
- 8% of sellers provided warranties.
- 3% of sellers undertook remodeling projects
- 23% of all sales were cash in January 2019 compared with 22% all-cash sales in January 2018.
Market Conditions and Expectations
- 78% of all agents reported that home prices remained the same or rose in January 2019 compared with 89% in January 2018. (This 11% change is notable.)
- Buyer traffic was rated at 52 in January 2019 compared with 69 in January 2018. (Confidence rating levels are based upon scores between 20-80; anything 50 and above is considered positive while anything 50 and under is considered less positive,)
- Seller traffic was rated at 42 in January 2019 compared with 44 in January 2018.
- Confidence levels concerning sales potential of specific properties are measured every 6 months. Here are January 2019 levels:
- Single-family homes – 62
- Townhomes – 50
- Condominiums – 48
- 4% of all sales were distressed property sales in January 2019, compared with 5% in January 2018.
- 70% of all transactions closed at original listing prices or net premiums in January 2019.
- 13% of all sellers were 34 years or younger; 41% of all sellers were between 35-56 years; 46% of all sellers were 56 years or older in January 2019.
- 66% of all sellers used their property as a primary residence; 23% of all sellers used their property as an investment.
- The average number of offers made on a property was 2.1 offers in January 2019.
Characteristics of Buyers and Sellers
- 29% of all buyers were first-time buyers in January 2019, equal to the percentage of first-time buyers in January 2018.
- 77% of first-time buyers made down payments of less than 20%.
- 16% of all buyers were vacation and/or retirement buyers in January, compared with 17% in January 2018.
Issues Affecting Agents/Brokers
- The average number of listings/agents = 2.7 listings in January 2019.
- The average number of clients taken on home tours/agents – 4.4 clients in January 2019.
For more specifics on the NAR January 2019 Confidence Index, click