The hot housing market may be cooling down just a bit as fall continues, allowing more buyers in to purchase.
According to NAR’s August Realtors® Confidence Index, across the U.S., the number of offers on homes that closed in August was reduced to 3.8, down from 4.5 in July and down from a high of 5.1 offers in April 2021. In Pennsylvania, buyers are facing even less competition, with homes receiving an average of 2.5 offers in August, down from 4.9 in July, the highest it hit in the pandemic. Still, homes aren’t lasting long on the market. Seventeen days was the median for time on the market in August. Eighty-seven percent of properties sold in less than a month, down 2% from July, but up 18% from last August.
Nearly half (45%) of offers were over listing price. All-cash sales represented 22% of all residential sales, down 1% from July, but up 4% year over year. Not surprisingly, even with less competition, these are still factors impacting first-time buyers, and their percentage fell to 29%, down 1% from July and 4% from last August. Nearly a quarter of buyers waived their inspection contingency clause to close faster and 25% of buyers waived their appraisal contingency clause.
As the pandemic continues, so does its impact on homebuyers’ desires. There was an increase of buyers looking in suburban, small town, rural or resort areas, at 88%, up 2% from last month and a year ago. Fifty-nine percent of agents reported that buyers wanted a work-from-home space in their next home.
However, with homes on the market moving so quickly, issues do pop up. The top reason contracts fell through were appraisal issues, home inspection or environmental issues and finance problems. The top reason contracts were delayed included appraisal issues, finance problems and titling or deed issues.