Demand  continued to expand faster than  supply. The Buyer Traffic Index rose to 56  from 36 in the same period last year, while the  Seller Traffic Index barely moved, ending at 38 from 37 last year.  REALTORS® reported numerous cases of multibidding  resulting in “properties selling above the list/asking price”  or “distressed sales selling close to market price.”  The market has steadily moved towards a seller’s market with buyers more willing to bear closing costs, in some cases “paying for half or more of the closing cost.”

What this means for REALTORS®: The tight inventory of homes for sale has strengthened prices, with  79 percent of REALTORS® reporting constant or increasing prices compared to the same time a year ago, and  87 percent of REALTORS® expecting constant or rising prices in the next 12 months.

Jed Smith, Managing Director, Quantitative Research

Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.