REALTORS CONFIDENCE INDEX SURVEY

Report on the October 2015 Survey

The REALTORS Confidence Index (RCI) report provides monthly information about real estate
market conditions and expectations, buyer/seller traffic, price trends, buyers characteristics, and
issues affecting real estate based on a monthly survey of REALTORS.
The October 2015 report is based on the responses of 2,969 REALTORS about local market
conditions experienced in October and the characteristics of their most recent sale for the month.
The data collected from a random sample of REALTORS is viewed to be representative of the
sales for the month. 1 The online survey was conducted from November 1-11, 2015. All real
estate is local: conditions in specific markets may vary from the overall national trends presented
in this report. REALTORS may be interested in comparing their markets against the national
summary.
The RCI report is an output of the Research Division of the NATIONAL ASSOCIATION of
REALTORS. 2 For questions or information about this report, please email dhale@realtors.org.

Lawrence Yun, Senior Vice President and Chief Economist

Danielle Hale, Managing Director, Housing Research
Gay Cororaton, Research Economist
Meredith Dunn, Research Communications Manager

Research Division
NATIONAL ASSOCIATION of REALTORS
500 New Jersey Avenue, NW
Washington, DC 20001
202.383.1000
1

The survey is sent to 50,000 REALTORS who are selected through simple random sampling. To increase the response rate,
the survey is also sent to respondents in the previous three surveys who provided their email addresses. The number of responses
to a specific question varies because the question may not be applicable to the respondent or because of non-response. To
encourage survey participation, eight REALTORS are randomly selected to receive a gift card.
2
Thanks to Jessica Lautz, Managing Director, Survey Research and Communications, and Amanda Riggs, Research Survey
Analyst, for their comments in improving the survey and in editing the report.

Table of Contents
Summary .................................................................................................................................................... 3
I. Market Conditions .................................................................................................................................. 4
REALTORS Broadly Reported an Improving Market Compared to a Year Ago ................................. 4
REALTORS Still Broadly Optimistic Over the Next Six Months ........................................................ 5
REALTORS Reported Stronger Buyer and Seller Traffic Compared to a Year Ago............................ 7
REALTORS Expect Prices to Increase Modestly in Next 12 Months................................................... 9
Properties On the Market at 57 Days ...................................................................................................... 10
II. Buyer and Seller Characteristics ......................................................................................................... 13
Sales to First-Time Buyers: 31 Percent of Sales ..................................................................................... 13
Sales for Investment Purposes: 13 Percent of Sales ............................................................................... 13
Distressed Sales: Six Percent of Sales .................................................................................................... 14
Cash Sales: 24 Percent of Sales .............................................................................................................. 16
Age, Previous Residence, and Type of Property Purchased ................................................................... 18
III. Current Issues .................................................................................................................................... 20
Contract Settlement Issues: Financing and Appraisals are Major Issues ................................................ 20

Summary
Market conditions vary across local markets and states, but REALTORS generally reported
improved housing market conditions in October 2015 compared to a year ago. The confidence
indices for current conditions and the six-month outlook for single-family, townhome, and
condominium properties all increased compared to a year ago. The buyer and seller traffic
indices also increased compared to a year ago, although the below 50 reading of the seller traffic
index indicates continued tight supply across many local markets. Compared to September 2015,
market activity eased, in part due to the seasonal slowdown across many local markets at this
time of the year. Sustained job creation, the low interest rate environment, measures
implemented by government-sponsored enterprises (Fannie Mae and Freddie Mac) to make
credit more accessible through the availability of three percent downpayment mortgages, and the
Federal Housing Authority reduction in the annual mortgage insurance premium rate that lowers
the cost of borrowing are likely sustaining the housing market recovery.
First-time home buyers accounted for 31 percent of sales, essentially unchanged from the
previous months figures. Cash sales made up 24 percent of sales, purchases for investment
purposes accounted for 13 percent of sales, and distressed properties dropped to six percent of
sales. Properties typically sold within 57 days nationally compared to 63 days a year ago. It
typically took another 40 days to close a sale.
Tight inventories, decreasing affordability, continued tight mortgage availability, and
slow/excessively conservative appraisals were the main issues reported by respondents.
Respondents in states with large oil-related industries reported weakening demand given the
continuing slump in oil prices. When asked about the Know Before You Owe/TRID
regulations that took effect on October 3, 2015, respondents reported that it is still too early to
assess the rules impact as it takes at least a month for contracts to go into settlement.
October 2015 REALTORS Confidence Index Survey Highlights
RCI Current Conditions: Single-Family Sales
RCI Six-Month Outlook: Single-Family Sales
RCI Buyer Traffic Index
RCI Seller Traffic Index
1
First-Time Home buyers, as Percent of Sales
Sales to Investors, as Percent of Sales
Cash Sales, as Percent of Sales
Distressed Sales, as Percent of Sales
Median Days on Market
Median Expected Price Growth in Next 12 Months (%)

Oct 2015
57
63
52
40
31
13
24
6
57
3.2

Sep 2015
61
62
53
41
29
13
24
7
49
3.2

Oct 2014
50
56
43
38
29
15
27
9
63
3.0

1 - NARs 2015 Profile of Home Buyer and Sellers (HBS) reports that among primary residence home buyers, 32 percent
were first-time home buyers. The HBS surveys primary residence home buyers, while the monthly RCI Survey surveys
REALTORS and also captures purchases for investment purposes and vacation/second homes.

I.

Market Conditions

REALTORS Broadly Reported Stronger Markets Compared to a Year Ago

Market conditions vary across local markets and states, but REALTORS generally reported
stronger housing market conditions across all property types in October 2015 compared to a year
ago. 3 Compared to September 2015, REALTORS reported a seasonal slowdown which is
normal at this time of the year. Sustained job creation, the low interest rate environment, and
measures implemented by government-sponsored enterprises (Fannie Mae and Freddie Mac) and
FHA to make credit more accessible / affordable through the availability of three percent
downpayment mortgages and lower mortgage insurance premiums are likely sustaining the
housing market recovery.
The REALTORS Confidence Index - Current Conditions chart below shows the single-family
homes index was 61, a level consistent with more respondents citing strong market conditions.
The current reading is better than one year ago in spite of the slip from last month (61 in
September 2015; 50 in October 2014). The indices for townhomes and condominiums were both
up from a year ago; however, they were both below 50, which indicates that more respondents
viewed their markets as weak rather than strong. REALTORS continued to report on the
difficulty of obtaining financing for condominium unit purchases because many condominiums
are not FHA or GSE eligible. 4
REALTORS Confidence Index: Current Conditions
as of October 2015
(50 = "Moderate" Conditions)
80

57

60

41

40

39

20
200801
200805
200809
200901
200905
200909
201001
201005
201009
201101
201105
201109
201201
201205
201209
201301
201305
201309
201401
201405
201409
201501
201505
201509

Single-family

Townhome

Condominium

3
This is a diffusion index which measures the direction of and broadness of the respondents market conditions or confidence.
An index of 50 indicates a balance of respondents having weak (index=0) and strong (index=100) expectations or all
respondents having moderate (=50) expectations. The index is not adjusted for seasonality effects.
4
FHA and the GSEs have financing eligibility criteria relating to ownership occupancy requirements, delinquent dues, project
approval process, and use for commercial space. See the Statement of the National Association of REALTORS Submitted for the
Record to the Senate Committee on Banking Housing and Urban Affairs on December 9, 2014 at
http://www.ksefocus.com/billdatabase/clientfiles/172/1/2180.pdf

REALTORS Still Broadly Optimistic Over the Next Six Months

Local market conditions vary, but REALTORS remained by and large strongly confident
about the outlook over the next six months for single-family homes. 5 The REALTORS
Confidence Index - Six-Month Outlook registered at 63 (62 in September 2015; 56 in October
2014). Confidence indices for townhomes and condominiums also rose, but stayed below 50,
indicating that more respondents viewed their markets as weak than strong.

63
47
44

200801
200805
200809
200901
200905
200909
201001
201005
201009
201101
201105
201109
201201
201205
201209
201301
201305
201309
201401
201405
201409
201501
201505
201509

80
70
60
50
40
30
20
10
0

REALTORS Confidence Index: Six-Month Outlook

as of October 2015
(50 = "Moderate" Outlook)

Single-family

Townhome

Condominium

The following maps show the REALTORS Confidence Index - Six-Month Outlook across
property types by state. All states, except for Vermont and Connecticut had broadly strong to
very strong markets. 6 States with large oil-related sectors such as Texas, North Dakota, and
Louisiana still had a broadly strong housing market. In the townhomes market, only 13 states
had broadly strong markets, which included California, Oregon, Washington, Colorado, Texas,
Florida, Maryland, and the District of Columbia. The condominium market remains broadly
weak except in nine states such as California, Washington, North Dakota, Colorado,
Wyoming, Michigan, and Florida. REALTORS have reported difficulty in accessing
condominium unit purchase financing for both FHA-insured and GSE-backed loans. Only 20
percent of condominiums are eligible for FHA condominium unit financing because of strict
eligibility criteria such as those pertaining to occupancy requirements and delinquency dues. 7

5
Respondents were asked What are your expectations for the housing market over the next six months compared to the current
state of the market in the neighborhood(s) or area(s) where you make most of your sales?
6
The market outlook for each state is based on data for the last three months to increase the observations for each state. Small
states such as AK, ND, SD, MT, VT, WY, WV, DE, and D.C., may have less than 30 observations. Respondents rated conditions
or expectations as Strong (100), Moderate (50), and Weak (0). The responses are compiled into a diffusion index. Values
25 and lower are considered very weak, values greater than 25 to 49 are considered weak, a value of 50 is considered
moderate, values greater than 50 to 75 are considered strong, and values greater than 76 are considered very strong.

http://www.realtor.org/topics/condominiums/condominium-resource-book

REALTORS Confidence Index Six-Month Outlook for Single-Family Homes

AugOct 2015

REALTORS Confidence Index Six-Month Outlook for Townhomes

AugOct 2015

REALTORS Confidence Index Six-Month Outlook for Condominiums

AugOct 2015

REALTORS Reported Stronger Buyer and Seller Traffic Compared to a Year Ago
While local conditions vary, buyer traffic was broadly strong compared to a year ago. The
REALTORS Buyer Traffic Index registered at 52 (53 in September 2015; 43 in October 2014).
Buyer traffic was stronger compared to a year ago, but was seasonally slower after the strong
spring and summer months.
Meanwhile, supply remains tight. The REALTORS Seller Traffic Index registered at 40 (41 in
September 2015 and 38 in October 2014). While the construction of new privately owned
housing units has been improving, reaching 1.2 million units in the second quarter of 2015,
roughly 40 percent of recent new construction has been multi-family structures which are
typically for rental occupancy. Historically, multi-family structures accounted for only 20
percent of new construction, so the availability of single-units for purchase among recently
constructed properties is lower than is historically normal. REALTORS reported low inventory
of properties in the lower price range and for those that are move-in ready.

80

REALTORS Buyer and Seller Traffic Indexes

as of October 2015
(50 = "Moderate" Conditions)

70

52

60
50
40

40

30

200801
200805
200809
200901
200905
200909
201001
201005
201009
201101
201105
201109
201201
201205
201209
201301
201305
201309
201401
201405
201409
201501
201505
201509

20

Buyer Traffic Index

Seller Traffic Index

Buyer traffic was moderate to very strong across most states, measured by the REALTORS
Buyer Traffic Index. 8 States with the strongest buyer traffic were Washington, Oregon, and
Wyoming.
REALTORS Buyer Traffic Index
AugOct 2015

Respondents were asked How do you rate the past month's buyer traffic in the neighborhood(s) or area(s) where you make
most of your sales? The responses were Strong (100), Moderate (50), and Weak (0). Respondents rated conditions or
expectations as Strong (100), Moderate (50), and Weak (0). The responses are compiled into a diffusion index. Values 25
and lower are considered very weak, values greater than 25 to 49 are considered weak, a value of 50 is considered
moderate, values greater than 50 to 75 are considered strong, and values greater than 76 are considered very strong.

Meanwhile, seller traffic was was broadly weak across most states, measured by the
REALTORS Seller Traffic Index. 9 Seller traffic was strong in Montana, Wyoming, North
Dakota, Texas, Maine, and Alaska.
REALTORS Seller Traffic Index
AugOct 2015

REALTORS Expect Prices to Increase Modestly in Next 12 Months

REALTORS who responded to the October 2015 survey expected prices to increase by 3.2
percent over the next 12 months (3.2 percent in September 2015; 3.0 percent in October 2014). 9
REALTORS expect the recent strong price growth to moderate as rising prices have made
homes unaffordable for many, with home prices almost at par with their levels prior to the
housing downturn. Home prices have started to rise at a more modest pace: in September 2015,
the median price of all existing homes in the U.S. was up by six percent compared to the level a
year ago, a deceleration from the nine percent year-over-year growth in April 2015.
The map shows the median expected price change in the next 12 months for each state based on
the August October 2015 RCI surveys. 10 REALTOR respondents from Florida were the most
9

Respondents were asked How do you rate the past month's seller traffic in the neighborhood(s) or area(s) where you make
most of your sales? The responses were Strong (100), Moderate (50), and Weak (0). Respondents rated conditions or
expectations as Strong (100), Moderate (50), and Weak (0). The responses are compiled into a diffusion index. Values 25
and lower are considered very weak, values greater than 25 to 49 are considered weak, a value of 50 is considered
moderate, values greater than 50 to 75 are considered strong, and values greater than 76 are considered very strong.
9

A comparison of the expected price growth for the next 12 months compared to the actual price growth shows the expected
price growth to be more conservative than the actual price growth, but both are generally headed in the same direction.
10
In generating the median price expectation at the state level, we use data for the last three surveys to have close to 30
observations. Small states such as AK, ND, SD, MT, VT, WY, WV, DE, and D.C., may have less than 30 observations.

upbeat, with a median expected price growth in the range of five to six percent. In Washington,
Nevada, and Colorado, the median expected price growth among respondents was four to five
percent.
Median Expected Price Change of REALTORS in Next 12 Months, By State
AugOct 2015

Properties on the Market at 57 Days

Properties that closed in October 2015 were typically on the market for a shorter time compared
to a year ago, staying on the market for 57 days (49 days in September 2015; 63 days in October
2014). 11 Days on market usually increase after the spring and summer months due to the
seasonal slowing down in demand. Respondents reported that it typically took another 40 days to
close the sale.
Short sales were on the market for the longest time at 90 days, while foreclosed properties
generally stayed on the market for 67 days. Non-distressed properties were on the market for 57
days.

11

Respondents were asked For the last house that you closed in the past month, how long was it on the market from listing time
to the time the seller accepted the buyers offer? The median is the number of days at which half of the properties stayed on the
market.

10

All: 57

Foreclosed: 67

201202

200

201108

Median Days on Market of Sales Reported By REALTOR

Respondents as of October 2015
Short sale: 90

Not distressed: 57

150
100
50

All

Foreclosed

Short sale

201508

201505

201502

201411

201408

201405

201402

201311

201308

201305

201302

201211

201208

201205

201111

201105

Not distressed

Approximately 33 percent of properties were on the market for less than a month when sold.
About 11 percent were on the market for longer than six months, a decrease from 30 percent in
January 2012. Properties that stay on the market for longer are more likely to sell at a discount.

40%
35%

Percentage Distribution of Time on Market of Sales Reported by

REALTOR Respondents as of October 2015
33%

30%
25%
20%
15%

18%

17%
11%

10%

5%

5%

4%

4%

3%

4%

0%
Less than 1 to less 2 to less 3 to less 4 to less 5 to less 6 to less 9 to less
12
1 month than 2
than 3
than 4
than 5
than 6
than 9 than 12 months or
months months months months months months months
more
201410

201509

201510

11

Percent of sales, by days on market

Properties That Stay Longer on the Market are More Likely

to Be Sold at a Discount, Jan-Oct 2015
100%
80%
60%
40%
20%
0%

30%
26%

25%

10%
19%

27%

41%

17%
4%

25%

Less than 1
months

Less than 3
months

6%

23%
6 to less than 9
months

12%
12%
34%
37%
12 months or
more

Days on Market
Net discount of 12% or higher
Net discount of less than 4%
Net premium of up to 4%
Net premium of 12% or higher

Net discount of 4% to 11%

No discount or premium
Net premium of 4% to 11%

Properties typically sold within a month in California, Utah, Colorado, North Dakota, South
Dakota, Nebraska, and the District of Columbia. In Vermont, properties were typically on the
market for longer than 90 days when sold. All real estate is local. State-level data is provided for
REALTORS who may want to compare local markets against the state and national summary.
Median Days on Market for Sales Reported by REALTORS, By State
AugOct 2015

12

II. Buyer and Seller Characteristics

Sales to First-Time Buyers: 31 Percent of Sales
The share of first-time home buyers has remained essentially unchanged for the last five years.
First-time home buyers accounted for 31 percent of existing home sales in October 2015 (29
percent in September 2015; 29 percent in October 2014). 12 REALTOR respondents reported
that tight inventory, increasingly unaffordable prices, and credit profiles that fail to meet tighter
underwriting standards are conditions that continue to work against first-time home buyers.
First-time Buyers as Percent of Market as of October 2015
60%
50%
40%

31%

30%
20%
10%

200810
200902
200906
200910
201002
201006
201010
201102
201106
201110
201202
201206
201210
201302
201306
201310
201402
201406
201410
201502
201506
201510

0%

Sales for Investment Purposes: 13 Percent of Sales

Approximately 13 percent of REALTORS reported that their last sale was for investment
purposes (13 percent in September 2015; 15 percent in October 2014). Purchases for investment
purposes have been on the decline with fewer distressed sales on the market. At their peak in
2012-2013, investment sales were approximately 20 percent of sales.

12

First-time buyers accounted for about 33 percent of all home buyers based on data from NARs 2014 Profile of Home Buyers
and Sellers (HBS). The HBS is a survey of primary residence home buyers and does not capture investor purchases but does
cover both existing and new home sales. The RCI Survey is a survey of REALTORS about their transactions and captures
purchases for investment purposes and second homes for existing homes.

13

Sales to Investors as Percent of Market as of October 2015

30%
25%
20%

13%

15%
10%
5%

200810
200902
200906
200910
201002
201006
201010
201102
201106
201110
201202
201206
201210
201302
201306
201310
201402
201406
201410
201502
201506
201510

0%

Distressed Sales: Six Percent of Sales

With rising home values and fewer foreclosures, the share of sales of distressed properties
continued to decline. In October 2015, distressed sales accounted for six percent of sales (seven
percent in September 2015; nine percent in October 2014). About five percent of reported sales
were foreclosed properties, and about one percent were short sales. 13 Distressed sales accounted
for about a third to a half of sales until 2011. Distressed properties sold at a discount of ten to 19
percent, depending on the condition of the property.
Distressed Sales, As Percent of Sales Reported by REALTOR
Respondents as of October 2015
60%
50%
40%

Foreclosed: 5% Short sale: 1%

30%
20%
10%

Foreclosed

13

201510

201506

201502

201410

201406

201402

201310

201306

201302

201210

201206

201202

201110

201106

201102

201010

201006

201002

200910

200906

200902

200810

0%

Short sale

The survey asks respondents to report on the characteristics of the most recent sale for the month.

14

Mean Percent Price Discount by Property Condition

of Distressed Sales Reported by REALTOR Respondents
Average for Nov 2014 - Oct 2015
19%

20%
15%

11%

10%

13%
10%

18%

12%

5%
0%
Below average

Above average
Foreclosed

Average

Short sale

Distressed sales have fallen, with fewer properties in foreclosure (840,217 properties in the
foreclosure inventory as of the second quarter of 2015 from a peak of two million properties in
2009-2010). 14 Fewer distressed sales and foreclosures improve home values, creating more home
equity for the homeowner. As of the second quarter of 2015, the equity of all households in real
estate was valued at $12.2 trillion, or 56 percent of the value of households real estate assets.
Household equity peaked at $13.3 trillion in the first quarter of 2006.

Foreclosure Inventory

Foreclosure inventory, in millions

Q1/2014

Q3/2012

Q1/2011

Q3/2009

Q1/2008

0.00
Q3/2006

0.0
Q1/2005

0.50
Q3/2003

1.0
Q1/2002

1.00

Q3/2000

2.0

Q1/1999

1.50

Q3/1997

3.0

Q1/1996

2.00

Q3/1994

4.0

Q1/1993

2.50

Q3/1991

5.0

Q1/1990

As percent of mortgages

Mortgage Foreclosure Inventory

As percent of mortgages

Source: Mortgage Bankers Association, downloaded from Haver Analytics

14

Mortgage Bankers Association, seasonally adjusted data.

15

Household Owner's Equity in Real Estate

Owner's Equity,
$ bn
14000.000

Owner's Equity,
as % of RE assets
80.00

12000.000

70.00

10000.000

60.00
50.00

8000.000

40.00

6000.000

30.00

4000.000

20.00

2000.000

10.00

0.000
Q1/1980
Q1/1982
Q1/1984
Q1/1986
Q1/1988
Q1/1990
Q1/1992
Q1/1994
Q1/1996
Q1/1998
Q1/2000
Q1/2002
Q1/2004
Q1/2006
Q1/2008
Q1/2010
Q1/2012
Q1/2014

0.00

Households: Owners' Equity in Real Estate (NSA, Bil $)

Households: Owners' Equity in Real Estate as a % of Household Real
Source: FRB, Flow of Funds , Table B.101, from Haver Analytics

Cash Sales: 24 Percent of Sales

The share of cash sales to the market has declined compared to the levels in 2010-2014, but the
share remains elevated compared to levels before the housing downturn. Approximately 24
percent of sales were all-cash (24 percent in September 2015; 27 percent in October 2014).
Buyers of homes for investment purposes, second homes, and foreign clients are more likely to
pay cash than first-time home buyers. As sales to investors and distressed properties have fallen,
the share of cash sales has declined as well.
Cash Sales as Percent of Market as of October 2015
40%
35%
30%

24%

25%
20%
15%
10%
5%

201510

201506

201502

201410

201406

201402

201310

201306

201302

201210

201206

201202

201110

201106

201102

201010

201006

201002

200910

200906

200902

200810

0%

16

Percent of Sales That are All-Cash By Type of Buyer

in October 2015
80%

71%

70%

62%

60%

49%

50%

42%

40%
30%
20%

13%

8%

10%
0%
International

Investor

Second
home

Distressed
sale

Relocation

First-time
buyer

Among financed home purchases, respondents reported that 38 percent made a downpayment of
at least 20 percent, about the same since 2011 when NAR started collecting this data. Among
financed purchases by first-time home buyers, 69 percent had downpayment terms of zero to six
percent, a decrease from 77 percent of first-time buyers in 2009. Low downpayment loans have a
higher monthly mortgage payment and typically require a mortgage insurance, but are an option
for home buyers who do not have large savings and are willing to pay the higher monthly
payment. The decreased share of low downpayment loans is one indicator that access to credit
has become more difficult for borrowers who cannot make higher downpayments. In 2015,
Fannie Mae and Freddie Mac started purchasing three percent downpayment mortgages of
borrowers who meet underwriting guidelines.
Percent of Mortgage Sales With Downpayment of
At Least 20 Percent as of October 2015
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

201510

201507

201504

201501

201410

201407

201404

201401

201310

201307

201304

201301

201210

201207

201204

201201

201110

201107

201104

38%

17

Percent of First-time Buyers Obtaining a Mortgage Who Made

a Downpayment of 0% to 6% as of October 2015*
90%
85%
80%
75%
70%
65%
60%
55%
50%

200906
200909
201002
201005
201008
201011
201102
201105
201108
201111
201202
201205
201208
201211
201302
201305
201308
201311
201402
201405
201408
201411
201502
201505
201508

69%

*The data reported for the month is a rolling three-month figure.

Age, Previous Residence, and Type of Property Purchased

Buyers age 34 and under accounted for 28 percent of home sales reported by the respondents.
Nearly half of buyers were in the age group 35 to 55 years.
Age Distribution of Buyers for Sales Reported by REALTOR
Respondents as of October 2015

Age 34 and under

Age 35 to 55

201510

201509

201508

201507

201506

201505

201504

201503

201502

201501

201412

201411

201410

201409

201408

201407

201404

201311

201309

201307

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Age 56 and over

Slightly more than half of all reported buyers lived in homes they owned immediately prior to
their recent home purchase. These buyers include trade-up or trade-down buyers and those who
are purchasing a second home or one for investment purpose. Home buyers who were renting
immediately prior to their recent home purchase accounted for 35 percent of sales, essentially
unchanged compared to past months.

18

Living Status of Home Buyers at Time of Home Purchase of

Sales Reported by REALTORS as of October 2015
100%
80%
60%
40%
20%
201510

201509

201508

201507

201506

201505

201504

201503

201502

201501

201412

201411

201410

201409

201408

0%

Lives with parents, relatives, or friends

Lives in own home
Rents an apartment or house

Sales data compiled for the November 2014-October 2015 timeframe showed that among buyers
34 years and under, 86 percent purchased single-family homes, compared to the 77 percent rate
for buyers 56 years and older. Buyers of ages 56 and over are about twice as likely to purchase a
condominium as other buyers. REALTORS have also reported a demand for 55 and older
community housing as the large baby boomer population continues to move into retirement.

Type of Residential Property Purchased by Age Group

Nov 2014 - Oct 2015
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

7%
7%

8%
6%

86%

86%

Age 34 and under

Age 35 to 55

Single-family

16%
7%

10%
7%

77%

84%

Age 56 and over

All

Townhome

Condominium

19

III. Current Issues

Contract Settlement Issues: Financing and Appraisals are Major Issues
In reporting on their last contract that went into settlement or was terminated over the period
August October 2015, REALTORS reported that 64 percent of contracts were settled on time,
29 percent had delayed settlement, and seven percent were terminated. On the impact of the
Know Before You Owe/TRID regulations that took effect on October 3, 2015, respondents
reported that it is still too early to assess the impact as it takes at least a month for contracts to go
into settlement.
How Sales Contracts Were Settled in Aug - Oct 2015*
100%
80%

9%
26%

10%
26%

9%
28%

7%
29%

6%
29%

7%
29%

6%
30%

7%
29%

65%

64%

63%

63%

65%

65%

64%

64%

60%
40%
20%
0%

Contract was terminated

Contract was delayed but eventually went into settlement
Contract was settled on time
* Based on the most recent contract that went into settlement or was terminated during
this period.

Of all contracts settled or terminated, financing, appraisal, and home inspection issues were the
major problems: 18 percent had financing issues, 13 percent had home inspection issues, and 11
percent had appraisal issues.
Among contracts that had a delayed settlement (29 percent), 46 percent had financing issues.
Among contracts that were terminated (seven percent), 32 percent had home inspection issues,
while 27 percent had financing issues.

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Problems Encountered for Contracts That Went Into Settlement or Were

Terminated in August - October 2015 *
49%

No problems encountered
Issues related to obtaining financing

18%

Home inspection/environmental issues

13%

Appraisal issues

11%

Contingencies stated in the contract

5%

Titling/deed issues

4%

Issues in buy/sell distressed property

3%

Home/hazard/flood insurance issues

1%

Buyer lost job

1%

Other

9%

*Will not sum to 100 percent because multiple responses are allowed. "Other" includes buyer or
seller backing out, price disagreement, non-price disagreement, HOA issues, builder delays, etc.

Problems Encountered for Contracts That Were Delayed But Eventually

Went Into Settlement in August - October 2015
(Delayed Contracts Represent 29 Percent of Closed or Terminated Contracts)
Issues related to obtaining financing
Appraisal issues
Home inspection/environmental issues
Titling/deed issues
Contingencies stated in the contract
Issues in buy/sell distressed property
Home/hazard/flood insurance issues
Buyer lost job
Other

46%
21%
17%
10%
9%
6%
2%
1%
18%

*Will not sum to 100 percent because multiple responses are allowed. "Other" includes buyer or seller
backing out, price disagreement, non-price disagreement, HOA issues, builder delays, etc.

21

Problems Encountered for Contracts That Were Terminated

in August - October 2015
(Terminated Contracts Represent Seven Percent of
Closed or Terminated Contracts)
Home inspection/environmental issues

32%

Issues related to obtaining financing

27%

Appraisal issues

16%

Contingencies stated in the contract

10%

Issues in buy/sell distressed property

Titling/deed issues
Buyer lost job
Home/hazard/flood insurance issues
Other

7%
4%
2%
1%
15%

*Will not sum to 100 percent because multiple responses are allowed. "Other" includes buyer or seller backing
out, price disagreement, non-price disagreement, HOA issues, builder delays, etc.

22

The NATIONAL ASSOCIATION of REALTORS, The Voice for Real Estate, is

Americas largest trade association, representing over 1 million members, including NARs
institutes, societies, and councils, involved in all aspects of the real estate industry. NAR
membership includes brokers, salespeople, property managers, appraisers, counselors and
others engaged in both residential and commercial real estate. The term REALTOR is a
registered collective membership mark that identifies a real estate professional who is a
member of the National Association of REALTORS and subscribes to its strict Code of
Ethics. Working for America's property owners, the National Association provides a facility
for professional development, research, and exchange of information among its members,
and to the public and government for the purpose of preserving the free enterprise system and
the right to own real property.
The Mission of the NATIONAL ASSOCIATION of REALTORS Research Division is to
collect and disseminate timely, accurate, and comprehensive real estate data and to conduct
economic analysis in order to inform and engage members, consumers, policy makers, and
the media in a professional and accessible manner.
To find out about other products from NARs Research Division, visit
www.REALTOR.org/research-and-statistics

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NATIONAL ASSOCIATION of REALTORS

Research Division
500 New Jersey Avenue, NW
Washington, DC 20001
202.383.1000

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