Eighty-eight percent of properties sold in less than a month, with the average home lasting on the market for 17 days in April, the National Association of Realtors® Confidence Index Survey for April, which surveys NAR members, found.
This is an increase of 32% year over year, and homes lasted 10 days less on the market compared to April 2020. Each home had five offers on average and 53% of those offers were above listing price. And most Realtors® expect this trend to continue.
Home prices are expected to jump 6% year to year across the country, the report found. In Pennsylvania, Realtors® predicted home prices would go up 4 to 6%, with buyer traffic remaining strong. Additionally, seller traffic is expected to remain stable.
Cash sales represented 25% of all transactions, compared to just 15% a year ago. Additionally, first-time buyers decreased, representing 31% of buyers, compared to 36% a year prior. Nearly three-quarters of first-time buyers put down less than a 20% down payment.
With homes moving so quickly, the report found that 10% of buyers purchased their home after only a virtual showing, open house or tour.
There is no doubt the pandemic has influenced many people’s homebuying choices. Eighty-five percent of homebuyers bought a home in the suburban, small town, rural or resort area and 60% of Realtors® reported they have seen an increase in buyers looking for work-from-home features in a home, like extra rooms for a home office or more space in general.
However, there are hiccups in sales, as Realtors® know. The most common issues for delayed and terminated contracts during this time related to obtaining financing, appraisal issues and home inspection or environmental issues.