D
espite a slow summer for home sales, buyers in some areas still face intense competition. According to the latest REALTORS Confidence Index, 60% of sellers nationwide sold their homes within a month, indicating strong demand. However, this has eased slightly, with the average home receiving 2.4 offers in August, down from 3.2 a year earlier.

    In areas where competition remains high, some buyers are waiving contingencies to strengthen their offers. For example, 18% waived inspection contingencies and 20% waived appraisal contingencies in August. NAR Chief Economist Lawrence Yun notes that falling interest rates could reignite buyer interest in areas with persistent housing shortages, potentially intensifying multiple offers.

    However, in regions with increasing inventory, like the South, buyers may match or outpace supply. Yun also points out that cash buyers are becoming more prevalent, making up 26% of August's buyers - a significant increase from the historical average of 15%. This trend is driven by record-high stock market and housing wealth.

    REALTOR competition remains strong, with NAR membership remaining high at 1.53 million in August. Yun attributes this to increasing listings and inventory levels, which are 20% above last year's numbers. Falling mortgage rates also tend to boost buyer activity, creating more opportunities for real estate professionals.