T
he latest survey conducted by NAR reveals a shift in the real estate market as buyers are gaining more leverage. Despite a decrease in overall sales, agents anticipate a slight increase in buyer traffic over the next three months due to expected interest rate cuts in late September, which could lower mortgage rates to more attractive levels for buyers. The National Association of Realtors' confidence index survey indicates a national shift towards a neutral or buyer's market, as data shows a decrease in the percentage of homes sold above the list price in July (24%), down from 29% in June and 35% in July 2023. The online survey collected responses from 1,640 Realtors between Aug. 1-13.

    While Realtors are not overly enthusiastic about buyer activity, there is a slight improvement in outlook. The August poll found that 16% of respondents expect a year-over-year increase in buyer traffic in the next three months, up from 13% in both June and July 2023. The percentage of those expecting an increase in seller traffic was 17% in July, the same as June, but a significant increase compared to July 2023 (11%). Mortgage rates have fallen to their lowest level in 15 months, with the 30-year fixed-rate mortgage exceeding 7% last August and peaking above 7.75% in the fall.

    July saw a decrease in properties selling within a month (from 74% in July 2023 to 62% in July 2024) and a drop in the average number of offers (from 3 in July 2023 to 2.7 in July 2024). The shift in home buying locations was indicated by the survey, with Realtors reporting that 89% of buyers purchased a home in a suburban, rural or resort area in July, up from 85% a year ago. The percentage of first-time homebuyers (29% in July) remained stable compared to June and was down slightly from a year ago (30%). The percentage of cash sales (27% in July), distressed sales (1%), and sales of homes intended for vacation use (4%) were all similar to June and July 2023.