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REALTORS CONFIDENCE INDEX SURVEY

Report on the February 2016 Survey


The REALTORS Confidence Index (RCI) report provides monthly information about real estate
market conditions and expectations, buyer/seller traffic, price trends, buyers characteristics, and
issues affecting real estate based on a monthly survey of REALTORS.
The February 2016 report is based on the responses of 3,109 REALTORS about local market
conditions experienced in February and the characteristics of their most recent sale for the
month. The data collected from a random sample of REALTORS is viewed to be representative
of the sales for the month. 1 The online survey was conducted from March 19, 2016. All real
estate is local: conditions in specific markets may vary from the overall national trends presented
in this report. REALTORS may be interested in comparing their markets against the national
summary.
The RCI report is an output of the Research Division of the NATIONAL ASSOCIATION of
REALTORS. 2 For questions or information about this report, please email dhale@realtors.org.

Lawrence Yun, Senior Vice President and Chief Economist


Danielle Hale, Managing Director, Housing Research
Gay Cororaton, Research Economist
Meredith Dunn, Research Communications Manager

Research Division
NATIONAL ASSOCIATION of REALTORS
500 New Jersey Avenue, NW
Washington, DC 20001
202.383.1000
1

The survey is sent to 50,000 REALTORS who are selected through simple random sampling. To increase the response rate,
the survey is also sent to respondents in the previous three surveys who provided their email addresses. The number of responses
to a specific question varies because the question may not be applicable to the respondent or because of non-response. To
encourage survey participation, eight REALTORS are randomly selected to receive a gift card.
2
Thanks to Jessica Lautz, Managing Director, Survey Research and Communications, Meredith Dunn, Research
Communications Manager, Brandi Snowden, Research Survey Analyst, and Amanda Riggs, Research Survey Analyst, for their
input in improving the survey questions and in editing the report.

Table of Contents
Summary .................................................................................................................................................... 3
I.

Market Conditions ............................................................................................................................ 4

REALTORS Largely Reported an Improvement in Market Conditions ............................................... 4


REALTORS Still Generally Optimistic Over the Next Six Months...................................................... 5
REALTORS Reported Uptick in Buyer Traffic amid Tight Supply...................................................... 7
REALTORS Typically Expect Prices to Increase By 3.6 Percent in Next 12 Months .......................... 9
Properties on the Market for 59 Days ..................................................................................................... 10
II. Buyer and Seller Characteristics ......................................................................................................... 12
Sales to First-Time Buyers: 30 Percent of Sales ..................................................................................... 12
Sales for Investment Purposes: 18 Percent of Sales ............................................................................... 12
Distressed Sales: 10 Percent of Sales...................................................................................................... 13
Cash Sales: 25 Percent of Sales .............................................................................................................. 14
Former Renters: 38 Percent of Homebuyers ........................................................................................... 15
III. Current Issues .................................................................................................................................... 15
Impact of TRID Regulations on Contract Settlement ............................................................................. 15
Contract Settlement Issues: Financing, Home Inspection, and Appraisals are Major Issues ................. 17

Summary
Market conditions vary across local markets, but the REALTORS confidence and traffic indices
indicate that overall market activity improved in February 2016 compared to one year ago and to
the previous month. Sustained job creation and the low cost of obtaining a mortgage continue to
support housing demand. However, lack of supply across many states is weighing on sales and
driving up prices, making homes less affordable especially for first-time buyers.
First-time home buyers accounted for 30 percent of sales. Purchases for investment purposes
made up 18 percent of sales, while distressed properties were ten percent of sales. Respondents
from New York, a state which follows a judicial foreclosure process that typically takes longer
than a non-judicial process, reported an increase in distressed properties in the market. Cash sales
accounted for 25 percent of sales. Nationally, properties typically were on the market 59 days
and took 40 days to close the contract. There are reports that TRID has led to longer rate lock
and escrow periods, but there are also reports that TRID has been fairly easy to deal with and
that the new rules are not a major problem largely because the industry prepared for the
changes in the time between announcement and implementation. 3
Very low supply, steep price increases, and lender processing delays were reported as the key
issues affecting sales, especially to first-time homebuyers. Appraisal backlogs and belowmarket and inconsistent appraisals were also reported to be causing transaction delays and
cancellations. The collapse in oil prices is also a concern in oil-producing states such as Texas,
Wyoming, Montana, and Oklahoma. Still, with the spring and summer months coming,
respondents were generally confident about the outlook for the next six months across all
property types. Respondents typically expected prices to increase 3.6 percent in the next 12
months.
February 2016 REALTORS Confidence Index Survey Highlights
RCI Current Conditions: Single-Family Sales
RCI Six-Month Outlook: Single-Family Sales
RCI Buyer Traffic Index
RCI Seller Traffic Index
4
First-Time Home Buyers, as Percent of Sales
Sales to Investors, as Percent of Sales
Cash Sales, as Percent of Sales
Distressed Sales, as Percent of Sales
Median Days on Market
Median Expected Price Growth in Next 12 Months (%)

Feb 2016
64
76
65
43
30
18
25
10
59
3.6

Jan 2016
59
75
59
40
32
17
26
9
64
3.4

Feb 2015

63
75
61
41

29
14
26
11
62
3.4

The TILARESPA Integrated Disclosure (TRID) regulations came into effect on October 3, 2015. The new guidelines are
intended to provide disclosures that will be helpful to consumers in understanding the key features, costs, and risks of the
mortgage for which they are applying.
4
NARs 2015 Profile of Home Buyer and Sellers (HBS) reports that among primary residence home buyers, 32 percent were
first-time home buyers. The HBS surveys primary residence home buyers, while the monthly RCI Survey surveys REALTORS
and also captures purchases for investment purposes and vacation/second homes.

I.

Market Conditions

REALTORS Largely Reported an Improvement in Market Conditions


Market conditions vary across local markets and states, but the indices on current conditions
indicate that overall market activity improved in February 2016 compared to one year ago and to
the previous month. Housing demand has remained strong amid the sustained creation of
200,000250,000 jobs monthly since 2014 and the low cost of obtaining a mortgage, with 30year fixed rates still at below four percent.
The REALTORS Confidence IndexCurrent Conditions chart below shows that the singlefamily homes index rose to 64, a level consistent with more respondents citing strong than
weak market conditions (59 in January 2016; 63 in February 2015). 5 The indices for
townhomes and condominiums improved but remained below 50, which indicate that more
respondents viewed their markets as weak rather than strong. REALTORS continued to
report on the difficulty of obtaining financing for condominium unit purchases because many
condominiums are not FHA or GSE eligible. 6
REALTORS Confidence IndexCurrent Conditions
as of February 2016
80
64
48

60
40

44

20
200801
200806
200811
200904
200909
201002
201007
201012
201105
201110
201203
201208
201301
201306
201311
201404
201409
201502
201507
201512

Single-family

Townhome

Condominium

5
This is a diffusion index which measures the direction of and broadness of the respondents market conditions or confidence.
An index of 50 indicates a balance of respondents having weak (index=0) and strong (index=100) expectations or all
respondents having moderate (=50) expectations. The index is not adjusted for seasonality.
6
FHA and the GSEs have financing eligibility criteria relating to ownership occupancy requirements, delinquent dues, project
approval process, and use for commercial space. See the Statement of the National Association of REALTORS Submitted for the
Record to the Senate Committee on Banking Housing and Urban Affairs on December 9, 2014 at
http://www.ksefocus.com/billdatabase/clientfiles/172/1/2180.pdf

REALTORS Still Generally Optimistic Over the Next Six Months


Local market conditions vary, but with the spring and summer months coming, REALTORS
remained by and large confident about the outlook over the next six months. 7 The REALTORS
Confidence IndexSix-Month Outlook for single-family homes registered at 76 (75 in January
2016; 75 in February 2015). The confidence index for townhomes held above 50 for the fourth
straight month at 58 (57 in January 2016; 55 in February 2015), while the index for
condominiums stayed above 50 for the third consecutive month at 53 (52 in January 2016; 50 in
February 2015). An index above 50 indicates more respondents view markets as strong than
weak.
REALTORS Confidence IndexSix-Month Outlook
as of February 2016
80

76

60

58
53

40
20

200801
200805
200809
200901
200905
200909
201001
201005
201009
201101
201105
201109
201201
201205
201209
201301
201305
201309
201401
201405
201409
201501
201505
201509
201601

Single-family

Townhome

Condominium

The following maps show the REALTORS Confidence IndexSix-Month Outlook across
property types by state. 8 Compared to current conditions in the single-family homes market, all
states, except for Delaware, Vermont, and West Virginia, were expected to have broadly
strong to very strong markets in the next six months, partly because of the seasonal uptick in
spring and summer. In the townhomes market, the outlook varies from weak to very strong
across the states, with very strong market outlooks in Colorado and Nebraska. In the
condominium market, the outlook is also mixed across the states, with the District of Columbia
having the strongest outlook, the only area where the index registered very strong.
REALTORS have reported difficulty in accessing condominium unit purchase financing for
loans insured by both the Federal Housing Administration (FHA) and government sponsored
enterprises Fannie Mae and Freddie Mac (GSEs). Only 20 percent of condominiums are eligible
for FHA condominium unit financing because of strict eligibility criteria such as those pertaining
7

Respondents were asked What are your expectations for the housing market over the next six months compared to the current
state of the market in the neighborhood(s) or area(s) where you make most of your sales?
8
The market outlook for each state is based on data for the last three months to increase the observations for each state. Small
states such as AK, ND, SD, MT, VT, WY, WV, DE, and D.C., may have fewer than 30 observations. Respondents rated
conditions or expectations as Strong (100), Moderate (50), and Weak (0). The responses are compiled into a diffusion
index. Index values 25 and lower are considered very weak, values greater than 25 to 49 are considered weak, a value of 50
is considered moderate, values greater than 50 to 75 are considered strong, and values greater than 76 are considered very
strong.

to occupancy requirements and delinquent dues. 9 In spite of some comments expressing concern
about the low oil prices, the respondents in the oil-producing states of Texas, Colorado,
Montana, and Nebraska broadly had a positive outlook about conditions in the next six months.

National Association of REALTORS. See http://www.realtor.org/topics/condominiums/condominium-resource-book

REALTORS Reported Uptick in Buyer Traffic amid Tight Supply


While local conditions vary, overall buyer traffic improved in February 2016 compared to one
year ago and a month ago. The REALTORS Buyer Traffic Index registered at 65 (59 in January
2016; 61 in February 2015). Meanwhile, supply conditions remained by and large tight in many
areas. The REALTORS Seller Traffic Index registered at 43 (40 in January 2016; 41 in February
2015). An index below 50 indicates that more respondents viewed traffic conditions as weak
rather than strong.
The gap in demand and supply has led to strong price growth against modest gains in income,
making a home purchase increasingly less affordable. The national median existing single-family
home price in January 2016 was $213,800, up eight percent from one year ago ($197,600). For
all of 2015, an average of 89 percent of measured metro areas saw increasing home prices, up
from the averages in 2014 (83 percent) and 2013 (88 percent). Meanwhile, incomes have risen at
a modest pace of less than three percent annually. 10
The number of permits authorized for new privately owned housing units has been improving
and averaged 1.17 million units in 2015. However, 690,084 units, or 59 percent of new
construction have been multi-family structures, and 95 percent of the multi-family units are for
rental occupancy. 11 Historically, multi-family structures accounted for only 20 percent of new
construction, so the availability of single-units for purchase among recently constructed
properties is lower than is historically normal. REALTORS reported low inventory of
properties in the lower price range and for those that are move-in ready.

10
11

Source: Average weekly earnings seasonally-adjusted data, Bureau of Labor Statistics, downloaded from Haver Analytics.
Source: Census Bureau. Characteristics of Units in New Multifamily Buildings Completed, Units Per Building, 2014.

REALTORS Buyer and Seller Traffic Indexes


as of February 2016
(50 = "Moderate" Conditions)

80
70

65

60
50

43

40
30

Buyer Traffic Index

201512

201507

201502

201409

201404

201311

201306

201301

201208

201203

201110

201105

201012

201007

201002

200909

200904

200811

200806

200801

20

Seller Traffic Index

Measured by the REALTORS Buyer Traffic Index, buyer traffic was strong in many states but
weak in some states in the Northeast, Midwest, and South. 12 The slump in oil prices has led to
weak buyer traffic conditions in North Dakota and Wyoming, while Texas continues to
experience strong buyer demand.

12

The index for each state is based on data for the last three months to increase the observations for each state. Small states such
as AK, ND, SD, MT, VT, WY, WV, DE, and D.C., may have fewer than 30 observations. Respondents were asked How do you
rate the past month's buyer traffic in the neighborhood(s) or area(s) where you make most of your sales? Respondents rated
conditions or expectations as Strong (100), Moderate (50), and Weak (0). The responses are compiled into a diffusion
index. Index values 25 and lower are considered very weak, values greater than 25 to 49 are considered weak, a value of 50
is considered moderate, values greater than 50 to 75 are considered strong, and values greater than 76 are considered very
strong.

Meanwhile, seller traffic was weak across most states, measured by the REALTORS Seller
Traffic Index. 13

REALTORS Typically Expect Prices to Increase By 3.6 Percent in Next 12 Months


Among REALTORS who responded to the February 2016 survey, the national median expected
price change over the next 12 months was 3.6 percent (3.4 percent in January 2016; 3.4 percent
in February 2015). On the one hand, REALTORS expect housing price growth to moderate as
rising prices have made homes less affordable for many. On the other hand, tight supply is
leading to expectations of further price increases.
The map shows the median expected price change in the next 12 months for each state based on
the December 2015February 2016 RCI surveys. Washington, D.C. is expected to post the
highest price growth, with the median price expected to increase seven percent, followed by the
state of Washington, with a median expected price growth of six percent. REALTOR
respondents from Oregon, California, Colorado, and Florida also expected strong price growth,
with the median expected price growth at four to five percent in each of these states. In North
Dakota, Vermont, Connecticut, and Delaware prices are expected to increase modestly, by up to
two percent.

13

Respondents were asked How do you rate the past month's seller traffic in the neighborhood(s) or area(s) where you make
most of your sales? Respondents rated conditions or expectations as Strong (100), Moderate (50), and Weak (0). The
responses are compiled into a diffusion index. Index values 25 and lower are considered very weak, values greater than 25 to
49 are considered weak, a value of 50 is considered moderate, values greater than 50 to 75 are considered strong, and
values greater than 76 are considered very strong.

Properties on the Market for 59 Days


Nationally, properties sold in February 2016 were typically on the market 59 days (64 days in
January 2016; 62 days in February 2015). 11 Fewer days on the market are an indication that
inventory remains tight. Short sales were on the market for the longest time at 126 days, while
foreclosed properties typically stayed on the market for only 57 days. Non-distressed properties
were typically on the market for 57 days.
Median Days on Market of Sales Reported by
REALTOR Respondents as of February 2016
200

All: 59

Foreclosed: 57

Short sale: 126

Not distressed: 57

150
100
50

All

Foreclosed

Short sale

201602

201511

201508

201505

201502

201411

201408

201405

201402

201311

201308

201305

201302

201211

201208

201205

201202

201111

201108

201105

Not distressed

11

Respondents were asked For the last house that you closed in the past month, how long was it on the market from listing time
to the time the seller accepted the buyers offer? The median is the number of days at which half of the properties stayed on the
market. In generating the median days on market at the state level, we use data for the last three surveys to have close to 30
observations. Small states such as AK, ND, SD, MT, VT, WY, WV, DE, and D.C., may have fewer than 30 observations.

10

Nationally, approximately 35 percent of properties were on the market for less than a month
when sold. About 15 percent were on the market for longer than six months.

40%
35%
30%
25%
20%
15%
10%
5%
0%

Percentage Distribution of Time on Market of Sales Reported by


REALTOR Respondents as of February 2016

Less 1 to less 2 to less 3 to less 4 to less 5 to less 6 to less 9 to less


12
than 1 than 2 than 3 than 4 than 5 than 6 than 9 than 12 months
month months months months months months months months or more
201502

201601

201602

By state, properties typically sold within a month in the District of Columbia, Colorado, and
Alaska. Properties typically sold between 31 and 45 days in Washington, California, Utah,
Arizona, Minnesota, Nebraska, Kansas, and Oklahoma. In some oil-producing states which are
undergoing slower job growth following the collapse of oil prices, such as Montana, Wyoming,
New Mexico, and Louisiana, properties stayed on the market between 61 and 90 days. Texas
appears more resilient to the oil price collapse, as properties typically sold between 46 and 60
days. Local conditions vary, and the data is provided for REALTORS who may want to
compare local markets against the state and national summary.

11

II. Buyer and Seller Characteristics


Sales to First-Time Buyers: 30 Percent of Sales
The share of first-time home buyers accounted for 30 percent of residential sales in February
2016 (32 percent in January 2016; 29 percent in February 2015). 12 Continued job creation and
the low interest rate environment appear to be sustaining housing demand, but lack of inventory
and steep price gains are weighing on sales. First-time buyers, who are likely to have more
modest incomes and weaker credit profiles than repeat and older buyers, are also likely to be the
most impacted by rising prices.

First-time Buyers as Percent of Residential Market


as of February 2016
60%
50%
40%

30%

30%
20%
10%

200810
200902
200906
200910
201002
201006
201010
201102
201106
201110
201202
201206
201210
201302
201306
201310
201402
201406
201410
201502
201506
201510
201602

0%

Sales for Investment Purposes: 18 Percent of Sales


Approximately 18 percent of REALTORS reported that their last sale was for investment
purposes (17 percent in January 2016; 14 percent in February 2015). At their peak in 2009,
investment sales were approximately 25 percent of sales. Purchases for investment purposes
have generally been on the decline with fewer distressed sales on the market.

12

First-time buyers accounted for about 32 percent of all home buyers based on data from NARs 2015 Profile of Home Buyers
and Sellers (HBS). The HBS is a survey of primary residence home buyers and does not capture investor purchases but does
cover both existing and new home sales. The RCI Survey is a survey of REALTORS about their transactions and captures
purchases for investment purposes and second homes for existing homes.

12

Sales to Investors as Percent of Residential Sales


as of February 2016
30%
25%
18%

20%
15%
10%
5%

200810
200902
200906
200910
201002
201006
201010
201102
201106
201110
201202
201206
201210
201302
201306
201310
201402
201406
201410
201502
201506
201510
201602

0%

Distressed Sales: 10 Percent of Sales


Distressed sales accounted for 10 percent of sales (nine percent in January 2016; 11 percent in
February 2015). Foreclosed properties were seven percent of sales, while short sales were three
percent of sales. 13 Respondents from New York, which follow a judicial foreclosure process that
is typically longer than a non-judicial process, reported more distressed properties in the market.
With rising home values and fewer foreclosures, the share of sales of distressed properties has
generally continued to decline. Distressed sales accounted for about a third to a half of sales until
2012 when they began to fall below this level.

Distressed Sales as Percent of Residential Market


as of February 2016
60%
50%
40%

Foreclosed: 7% Short sale: 3%

30%
20%
10%

Foreclosed

13

201602

201510

201506

201502

201410

201406

201402

201310

201306

201302

201210

201206

201202

201110

201106

201102

201010

201006

201002

200910

200906

200902

200810

0%

Short sale

The survey asks respondents to report on the characteristics of the most recent sale for the month.

13

Cash Sales: 25 Percent of Sales


Approximately 25 percent of sales were all-cash (26 percent in January 2016; 26 percent in
February 2015). Buyers of homes for investment purposes, second homes, and foreign clients are
more likely to pay cash than first-time home buyers. Among buyers who obtained a mortgage, 37
percent made a downpayment of 20 percent or more.
Cash Sales as Percent of Residential Sales
as of February 2016
40%
35%
30%
25%
20%
15%
10%
5%
0%

200810
200902
200906
200910
201002
201006
201010
201102
201106
201110
201202
201206
201210
201302
201306
201310
201402
201406
201410
201502
201506
201510
201602

25%

Percent of Mortgage Sales With Downpayment of


At Least 20 Percent as of February 2016
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

201601

201510

201507

201504

201501

201410

201407

201404

201401

201310

201307

201304

201301

201210

201207

201204

201201

201110

201107

201104

37%

14

Former Renters: 38 Percent of Homebuyers


Home buyers who were renting immediately prior to their recent home purchase accounted for
38 percent of sales, about the same as in previous months (40 percent in January 2016; 38
percent in February 2015). Renters are facing challenges transitioning into homeownership
including rising rents, which erode their ability to save for a downpayment, and steep house price
increases amid modest income gains which are making homes less affordable. According to
NARs March 2016 Housing Opportunities and Market Experience (HOME) Survey of U.S.
households, 63 percent of respondents who currently do not own a home believe it would be
difficult to qualify for a mortgage given their current financial situation. 14
Living Status of Homebuyers at Time of Home Purchase
as of February 2016
60%
50%
40%
30%
20%
10%
0%

54%
38%

201408
201409
201410
201411
201412
201501
201502
201503
201504
201505
201506
201507
201508
201509
201510
201511
201512
201601
201602

8%

Rents an apartment or house


Lives in own home
Lives with parents, relatives, or friends

III. Current Issues


Impact of TRID Regulations on Contract Settlement
The TILARESPA Integrated Disclosure (TRID) regulations which came into effect on October
3, 2015, were intended to provide disclosures that will be helpful to consumers in understanding
the key features, costs, and risks of the mortgage for which they are applying. Toward this end,
the new guidelines prescribe timelines for when consumers should receive the Loan Estimate and
the Closing Disclosure. 15

14

http://www.realtor.org/reports/housing-opportunities-and-market-experience-survey
The creditor should deliver the Loan Estimate or place it in the mail no later than the third business day after receiving the
loan application. The creditor is required to ensure that the consumer receives the Closing Disclosure no later than three business
days before the consummation of the loan. If the creditor provides a new Closing Disclosure, the consumer must be provided
with another three-business day waiting period. Guidelines at http://files.consumerfinance.gov/f/201508_cfpb_tila-respaintegrated-disclosure-rule.pdf.
15

15

Nearly half of REALTOR respondents reported a longer closing period compared to a year ago.
Among contracts that closed in February 2016, the median number of days to close a contract
was 40 days, up from 36 days in July 2015 when NAR first started tracking this information. To
meet the required review of the Closing Disclosure under the new guidelines, respondents have
reported writing a 45day closing period into their contracts or extending the usual closing
period by one to two weeks.
While there are reports that TRID is causing delays and making transactions difficult, there
are also reports that TRID has been fairly easy to deal with and that the TRID rules arent a
major problem, largely because the industry prepared for the changes in the time between
announcement and implementation. However, REALTORS have taken issue with not being
able to have access to the Closing Disclosure. Without access, they cannot quickly review the
documents for errors, and delays in catching errors can lead to delays in home closings.
Percent of Respondents Who Reported a
Longer Closing Period Compared to a Year Ago
47%

53%

49%

47%

201601

201602

37%

201510

201511

201512

Median and Average Days to Close a Contract


41
36

42
35

41
35

4042

43
40

44
40

46
42

43
40

201507 201508 201509 201510 201511 201512 201601 201602


Median

Average

16

Contract Settlement Issues: Financing, Home Inspection, and Appraisals are Major Issues
In reporting on their last contract that went into settlement or was terminated over the period
December 2015February 2016, 63 percent of contracts were settled on time, 30 percent had
delayed settlement, and seven percent were terminated.

100%
80%
60%
40%
20%
0%

How Sales Contracts Were Settled in


December 2015February 2016*
9% 10% 9% 7% 6% 7% 6% 7% 6% 7% 6% 7%
26% 26% 28% 29% 29% 29% 30% 29% 32% 33% 32% 30%
65% 64% 63% 63% 65% 65% 64% 64% 62% 60% 62% 63%

Contract was terminated


Contract was delayed but eventually went into settlement
Contract was settled on time
* Based on the respondent's most recent contract that went into settlement or was
terminated during this period.

Among contracts that had a delayed settlement (30 percent), financing, home inspection, and
appraisal issues were the primary causes of the delay.

Problems Encountered for Contracts That Were Delayed But Eventually


Went Into Settlement in December 2015February 2016*
(Delayed Contracts Represent 30 Percent of Closed or Terminated
Contracts)
Issues related to obtaining financing
Home inspection/environmental issues
Appraisal issues
Titling/deed issues
Contingencies stated in the contract
Issues in buy/sell distressed property
No problems encountered
Home/hazard/flood insurance issues
Buyer lost job
Other

16%
16%
11%
8%
8%
5%
2%
1%
22%

42%

*Based on the respondent's most recent contract that went into settlement or was terminated during this
period. Percentages will not sum to 100 percent because multiple responses are allowed. "Other" includes
buyer or seller backing out, price disagreement, non-price disagreement, HOA issues, builder delays,

17

Among contracts that were terminated (seven percent), home inspection issues were the major
case of delay, followed by issues related to the buyer obtaining financing.
Problems Encountered for Contracts That Were Terminated
in December 2015February 2016*
(Terminated Contracts Represent Seven Percent of
Closed or Terminated Contracts)
Home inspection/environmental issues
Issues related to obtaining financing
22%
Appraisal issues
11%
No problems encountered
8%
Contingencies stated in the contract
6%
Issues in buy/sell distressed property
6%
Buyer lost job
5%
Titling/deed issues
4%
Home/hazard/flood insurance issues
3%
Other

27%

27%

*Based on the respondent's most recent contract that went into settlement or was terminated during this
period. Percentages will not sum to 100 percent because multiple responses are allowed. "Other" includes
buyer or seller backing out, price disagreement, non-price disagreement, HOA issues, builder delays, etc.

18

The NATIONAL ASSOCIATION of REALTORS, The Voice for Real Estate, is


Americas largest trade association, representing over 1 million members, including NARs
institutes, societies, and councils, involved in all aspects of the real estate industry. NAR
membership includes brokers, salespeople, property managers, appraisers, counselors and
others engaged in both residential and commercial real estate. The term REALTOR is a
registered collective membership mark that identifies a real estate professional who is a
member of the National Association of REALTORS and subscribes to its strict Code of
Ethics. Working for America's property owners, the National Association provides a facility
for professional development, research, and exchange of information among its members,
and to the public and government for the purpose of preserving the free enterprise system and
the right to own real property.
The Mission of the NATIONAL ASSOCIATION of REALTORS Research Division is to
collect and disseminate timely, accurate, and comprehensive real estate data and to conduct
economic analysis in order to inform and engage members, consumers, policy makers, and
the media in a professional and accessible manner.
To find out about other products from NARs Research Division, visit
www.REALTOR.org/research-and-statistics

Also follow NAR Research on


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NATIONAL ASSOCIATION of REALTORS


Research Division
500 New Jersey Avenue, NW
Washington, DC 20001
202.383.1000

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