REALTORS® Confidence Index (RCI): Low Inventory Major Issue Affecting Transactions
REALTORS® have long reported low inventory as a major issue affecting transactions. That continued in April, according to the REALTORS® Confidence Index (RCI) survey.
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 homeownership and real estate transactions.
The latest report presents key results about market transactions from April 2019:
Market Conditions and Expectations
• The REALTORS® Buyer Traffic Index registered at 63 (74 in April 2018).
• The REALTORS® Seller Traffic Index registered at 47 (45 in April 2018).
• The REALTORS® Confidence Index—Six-Month Outlook Current Conditions registered at 67 for detached single-family, 56 for townhome, and 53 for condominium properties. An index above 50 indicates market conditions are expected to improve.
• Properties were typically on the market for 24 days (26 days in April 2018).
• Eighty-two percent of respondents reported that home prices remained constant or rose in April 2019 compared to levels one year ago (88 percent in April 2018).
Characteristics of Buyers and Sellers
• First-time buyers accounted for 32 percent of sales (33 percent in April 2018).
• Vacation and investment buyers comprised 16 percent of sales (14 percent in April 2018).
• Sales of distressed properties (foreclosed or sold as a short sale) accounted for 3 percent of sales (4 percent in April 2018).
• Cash sales made up 20 percent of sales (21 percent in April 2018).
• Twenty-one percent of sellers offered incentives such as paying for closing costs (10 percent), providing warranty (8 percent), and undertaking remodeling (4 percent).3
Issues Affecting Buyers and Sellers
• From February 2019–April 2019, 76 percent of contracts settled on time (78 percent in February 2018–April 2018).
• Among sales that closed in April 2019, 74 percent had contract contingencies. The most common contingencies pertained to home inspection (54 percent), obtaining financing (43 percent), and getting an acceptable appraisal (41 percent).
• REALTORS® report “low inventory” and “construction” as the major issues affecting transactions in April 2019
For more information and to access the report click here.