New research to measure the strength of the resale housing market found prices continue to rise and buyer competition is still intense.
John Burns Real Estate Consulting, an independent research and consulting firm, unveiled its Resale Housing Market Index (RHMI) last month. It is based on a proprietary survey of more than 6,000 real estate agents. (Note: The firm is recruiting more brokers to participate in future surveys; see box.)
If you are a real estate broker and are interested in weighing
The new index measures the overall health and sentiment of national resale housing fundamentals.
Commenting on their findings, researchers Devyn Bachman, Jody Kahn, and Nicole Luszczak stated, “Don’t let headline sensationalism fool you. While easing conditions and seasonal shifts in many metros point to less frenzied demand, the market remains strong.”
The analysts from Burns believe the shifts and insights into supply, demand, and affordability trends may help industry leaders gradually recalibrate their businesses after roughly 18 months “of panic and chaos.”
Key findings in the initial survey included:
- Sales remain strong, with some typical seasonal slowing.
- Prices continue to rise, with 77% of agents sharing that home prices rose month-over-month.
- Investors are very active in the market and cash is king.
- Buyer competition remains fierce, with 59% of contracts receiving multiple offers nationally.
- Down payments are growing, with 42% of agents reporting higher down payments compared to pre-COVID.
Using a 100-point scale to gauge a contracting versus expanding resale market, the latest index was 75.5 (0-100 scale with below/above 50 = contracting/expanding).
Questions about the RHMI or finding out more on how to participate can be directed to Devyn Bachman, vice president of research, at firstname.lastname@example.org.
John Burns Real Estate Consulting has offices throughout the U.S. and collects data on 300+ markets nationwide. Its clients include builders, developers, building products companies, investors and others.