Q2 2023 Market Pulse Survey Results
The Market Pulse Survey is a poll of licensed real estate professionals and members of the East Tennessee REALTORS®. The Q2 2023 iteration of the survey was conducted online from June 12-20, 2023, and received a total of 213 responses. The survey’s margin of error is +/- 5.5% at the 95 percent confidence level.
Key Findings
- Buyer traffic receded in the second quarter. Only 12% of respondents reported seeing more buyer traffic than this time last year, compared to 17% the previous quarter. By comparison, seller traffic declined further with only 11% of respondents reporting more seller traffic than this time last year.
- REALTORS® expect buyer traffic to remain relatively stable over the next three months, with 40% of respondents expecting lower-than-usual buyer traffic. Expectations about future seller traffic were split, with 39% of respondents expecting seller traffic to stay about the same and 42% expecting seller traffic to be less than usual.
- Respondents reported receiving an average of 3.0 offers on homes sold in Q2 2023, up from 2.2 offers the previous quarter.
- 33% of REALTORS® expect home sales will increase over the next year, up from 28% the previous quarter. 42% expect home sales will stay about the same, and 26% expect home sales will decrease.
- Industry expectations regarding home prices remain relatively strong. 83% of respondents said they expect home prices will either stay the same or increase over the next year, with 64% saying they expect prices to increase.
- All-cash sales represented 30% of all home sales in Q1 2023, down from 37% the previous quarter but up from 29% a year ago.
- REALTORS® reported fewer problems with appraisals. Only 9% of homes sold in the past three months had an appraised value that was less than the purchase price, down from 20% a year ago.
- 48% of buyers in the past three months waived at least one contingency in their purchase contract, down from 62% a year ago.
"The housing market is still facing headwinds as economic uncertainty and higher mortgage rate have slowed buyer and seller activity alike," said Hancen Sale, Government Affairs and Policy Director at East Tennessee REALTORS®. "However, our latest survey suggests Realtors® remain cautiously optimistic and their outlook on the housing market is improving, especially as it relates to prices. For instance, a strong majority (64%) of local Realtors® expect home prices to increase over the next year, a large shift from just a year ago."
| Market Outlook | Q2 2023 | Q1 2023 | Q2 2022 |
| Percent of respondents who expect a year-over-year increase in buyer traffic in next 3 months | 12% | 17% | 13% |
| Percent of respondents who expect a year-over-year increase in seller traffic in next 3 months | 11% | 20% | 32% |
| Percent of respondents who expect home sales to increase over the next year | 33% | 28% | 24% |
| Percent of respondents who expect home prices to increase over the next year | 64% | 53% | 50% |
| Key Market Indicators | Q2 2023 | Q1 2023 | Q2 2022 |
| Median days on market | 8 | 20 | 4 |
| First-time homebuyers, as percent of sales | 17% | 24% | 16% |
| Sales for non-primary residence use, as a percent of sales | 12% | 8% | 18% |
| Cash sales, as percent of sales | 30% | 28% | 29% |
| Off-market, as percent of sales | 12% | 13% | 10% |
| Average number of offers received on the most recent sale | 3.0 | 2.2 | 3.5 |
| Buyer and Seller Trends | Q2 2023 | Q1 2023 | Q2 2022 |
| Percent of sellers moving somewhere else in current city/county | 50% | 38% | 46% |
| Percent of sellers moving somewhere else in Tennessee | 23% | 20% | 30% |
| Percent of sellers moving to a different state/outside of Tennessee | 27% | 40% | 24% |
| Percent of buyers moving due to relocation (such as for business or a job change) | 26% | 8% | 20% |
| Percent of buyers who were previously renting | 28% | 33% | 21% |
| Percent of buyers who are repeat homebuyers | 59% | 43% | 58% |
| Other Market Indicators | Q2 2023 | Q1 2023 | Q2 2022 |
| Percent of buyers who waived at least one contingency | 48% | 47% | 62% |
| Percent of buyers who waived inspection contingency | 16% | 14% | 27% |
| Percent of buyers who waived appraisal contingency | 23% | 23% | 29% |
| Percent of contracts where appraised value met or exceeded the contract price | 91% | 95% | 80% |
| Percent of contracts in the past 3 months that were terminated | 5% | 5% | 5% |
| Percent of contracts in the past 3 months that had delayed settlement | 14% | 14% | 21% |
| Percent of contracts in the past 3 months that closed/settled on time | 80% | 81% | 72% |
| Percent of respondents who have worked with an investor buyer in the past three months | 30% | 38% | 54% |
| Percent of respondents who listed 3+ properties in the past month | 24% | 19% | 36% |
| Percent of respondents currently working with 3+ clients actively/seriously looking to purchase a home | 61% | 42% | 36% |
| Source: East Tennessee REALTORS® | |||
| Note: Estimates based on East Tennessee REALTORS® quarterly Market Pulse Survey and MLS data. | |||
| Copyright © 2023 EAST TENNESSEE REALTORS® | |||
| Reproduction, reprinting or retransmission of this report in any form is prohibited without written permission. For questions above the survey or its contents, please contact Hancen Sale at hancen@etnrealtors.com. | |||
About the Survey
- The Market Pulse Survey gathers on-the-ground information about local market conditions from members of East Tennessee REALTORS® based on their client interactions and real estate transactions in the previous three months.
- The Market Pulse Survey is provided by East Tennessee REaltors solely for use as a reference. Reproduction, reprinting or retransmission in any form is prohibited without written permission.
- Media inquiries about the survey should be directed to Hancen Sale at hancen@kaarmls.com.
Data Attribution: You are welcome to use or reproduce this survey data for your own purposes, but we ask that you attribute any full or partial use of the data to East Tennessee REALTORS® and include the time period when the survey was conducted.
| Copyright © 2022 EAST TENNESSEE REALTORS® |