February 2022 REALTORS® Confidence Index Survey
As we’ve sprung into 2022, there have been some significant changes in the real estate market. The National Association of Realtors® puts out a REALTORS® Confidence Index (RCI) survey each month that gathers on-the-ground information based on real estate transactions.
The February 2022 REALTORS® Confidence Index Survey gave us some considerable statistics to showcase where our country is in the market. On average, there were nearly 5 offers for every home sold. This number is higher than the month prior and one year ago.
Forty-eight percent of buyer’s offers were above the list price which rose 2% since the prior month. 13% of offers were at or above 10% more than the list price. On average, the offer price was 2.9% over the list price (2.3% in the prior month). What that looks like in dollars is that based on the median sales price of $357,300 in February (that would incorporate the 2.9% premium), a buyer typically offered $10,000 more than the asking price.
Eighty-four percent of listings were on the market for less than one month which was up 10% since a year ago making the competition more intense since the housing market’s recovery in 2012. The survey showed that the typical buyer loses 2 home offers before succeeding on the third offer.
Competition could intensify in 2022 before waning in 2023 as home buyers compete to lock in at the current rates. Mortgage rates may rise more steeply in 2023, with some current models forecasting rates climbing over 6%.
-Source NAR RCI Survey