By

2015 continues to be an impressive seller’s market. What’s even more impressive, however, is that the high competition amongst buyers has not scared them out the market. This housing market quarterly report, we saw more buyers and sellers enter the market to move inventory at higher prices and in record speed.

This data comes from a survey of HouseHunt agents with exclusive territories across America. This grassroots approach to studying the housing market gives us a thorough look at where the real estate market will continue to go in 2015.

Activity-Continues-to-Grow-2015-2nd-Quarter-Market-Report-housing market quarterly

Buyer & Seller Activity

Last quarter, we presented a seller’s market. There were considerably more buyers than sellers on the market, and conditions responded accordingly. This quarter, that stark contrast has carried over into the Spring. 64% of HouseHunt agents surveyed report having more buyers than sellers. This is an even greater difference than last quarter, when everyone first started claiming 2015 as a seller’s market.

Buyers continue to disproportionately dominate the market, giving seller’s a clear edge. What’s fascinating, however – and also a huge relief to industry professionals – is that the term “seller’s market” doesn’t seem to be scaring away buyers.

Even though buyer’s are at a disadvantage in this lopsided market, 83% of HouseHunt agents surveyed report an increase in buyer activity over last quarter. And no, this isn’t a standard second quarter jump. Last year, the second quarter only brought extra buyer activity for 71% of our agents.

Seller activity is also growing. 57% of agents saw an increase in seller activity. As both markets continue to grow rapidly year over year and quarter over quarter, it’s clear the housing market is finally back in full swing.

Two years ago, only 17% of HouseHunt agents reported having more sellers than buyers. While the percentage of each market has stayed roughly the same, the actual quantity of people in the market has increased greatly.  But how has that affected the price of homes and their duration on the MLS?

Home Inventory

A seller’s market equates to a strong economy. 91% of HouseHunt agents saw their listings sell for more this quarter than this time last year. This is about average: last quarter saw 87% report an increase, and this time last year saw 93% report an increase. What really makes the second quarter of 2015 stand out is how much that increase actually was. 32% of agents saw listings sell for over 10% more than last year. This rapid price point increase is in line with Inman reports about this being the highest prices for homes in the last seven years.

Only 4% of agents across the nation say their listings are selling for less. That’s the lowest depreciation rate since before the burst of the housing bubble!

Besides sale price, we also need to take a look at how long active listings sit on the market. As you can imagine, such competition amongst buyers has caused listings to fly off the market faster than ever. A whopping 70% of our agents say their listings sat on the market for an average of less than 60 days. That’s the highest percentage we’ve seen since the recession.

So listings are selling for more and they’re selling faster. Does this mean more contentment with people selling their homes? Not necessarily. It’s important for sellers to keep their expectations realistic. They are clearly being inundated with all this good news about the market, and they immediately think they can overprice their homes. 26% of our agent’s clients saw their listings close with less than 95% of their original asking price. Compare this to this time last year, when only 9% of sellers were walking away with less than 95% of their original price.

Foreclosures

One thing we’re hearing a lot about in the news is a major decline in foreclosures. According to a recent Inman report, 12 out of 20 major metros saw a decline in foreclosures. This is great news, and there’s no reason to believe it might not be accurate. However, when you bring in our exclusive territories from all over the nation – not just the major cities – we saw that foreclosure rates are actually pretty consistent with where they’ve been for the last couple years.

This quarter, 84% of our agents said foreclosures made up less than 15% of their local market. While this is nothing particularly exciting, we can hope that the changes evident in major cities as reported by Inman start to trickle out into smaller cities and suburbs, as well. The third quarter of 2014 actually saw a small spike in foreclosures, but perhaps this summer will go in the other direction.

In Conclusion…

It can’t be overstated that the continued rise of the seller’s market is not just good for the housing market, but for the economy overall. To see home prices continue to rise and the market continue to grow simply wasn’t conceivable a few years ago.

Add to those market conditions the factors that indicate a promising summer for real estate, and there’s clearly a lot to be excited about. In the next quarter, we can expect a drop in foreclosures to sweep the nation. We can also expect the number of buyers and sellers to continue to grow as summer is traditionally the industry’s busiest time of year.

HouseHunt’s Quarterly Comparison Chart For the U.S. | 2nd Quarter 2015 Results in Red

2013 2014 2015
Quarter 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd
Buyer-Seller Ratio
More Buyers 76% 67% 57% 51% 61% 54% 39% 50% 61% 64%
More Sellers 10% 17% 26% 21% 19% 24% 37% 26% 15% 20%
About Even 14% 16% 17% 28% 20% 22% 24% 24% 24% 18%
Average Days On Market
0-60 Days 46% 65% 65% 57% 60% 63% 63% 56% 55% 70%
Sold in 60 Days Plus 54% 35% 35% 43% 40% 37% 37% 44% 45% 30%
Unsold Inventory
Good Supply 29% 24% 26% 32% 24% 28% 39% 44% 26% 26%
Tight Supply 71% 76% 74% 68% 76% 72% 61% 56% 74% 74%
Annual Price Appreciation
Up 0-5% 33% 21% 18% 29% 24% 27% 26% 26% 25% 26%
Up 5-10% 21% 24% 17% 31% 26% 29% 38% 27% 35% 33%
Up 10% Plus 29% 43% 54% 31% 42% 37% 25% 36% 27% 32%
Unchanged 7% 6% 5% 3% 3% 3% 4% 3% 6% 5%
Negative Appreciation 10% 6% 6% 6% 5% 4% 7% 8% 7% 4%
Buyer Activity
Repeat / Move UP / Investors 74% 81% 85% 78% 79% 77% 84% 76% 82% 75%
First-time Buyers 26% 19% 15% 22% 21% 23% 16% 24% 18% 25%
Ask vs. Sale Price
Less Than 95% 31% 30% 23% 30% 23% 9% 22% 28% 29% 26%
More Than 95% 69% 70% 77% 70% 77% 91% 78% 72% 71% 74%
Multiple Offers?
Yes 87% 88% 91% 87% 83% 86% 83% 76% 84% 88%
No 13% 12% 9% 13% 17% 14% 17% 24% 16% 12%
Short Sales / Foreclosures
Less than 15% of the market no data no data 77% 80% 83% 79% 87% 85% 86% 84%
More than 15% of the market no data no data 23% 20% 17% 21% 13% 15% 14% 16%

Find us on Google+

2015 2nd Quarter Market Report: Buyer & Seller Activity Continues to Grow by