Repeat Homebuyers Shift Strategy as More Plan to Sell First, Then Buy
SEATTLE — Aug. 19, 2015 — High prices ranked as the number one concern among homebuyers in the second quarter of 2015, according to a survey of over 3,300 homebuyers conducted by Redfin (www.redfin.com), the next generation real estate brokerage. The high cost of real estate in the second quarter edged out last year’s number one concern of limited inventory.
Twenty-seven percent of homebuyers in the second quarter responded that high prices were their top concern and 17 percent listed competition from other buyers. First-time buyers were especially sensitive to price growth, with 31 percent listing it as their top concern.
“My girlfriend and I have great jobs,” said a first-time homebuyer who completed Redfin’s survey. “But when we look at house prices in L.A., we feel poor.”
Repeat homebuyers were nearly twice as likely as last year’s repeat buyers to sell their existing home first before buying a new one. Forty-four percent of repeat buyers said they planned to sell first, then buy, up from 23 percent in the second quarter of 2014. Redfin agents say the sell-first tactic frees up cash and makes buyers more nimble in a fierce marketplace.
“Buyers want to do everything possible to be competitive,” said Stuart Naranch, a Redfin agent in Washington D.C. “One way to do that is avoid making an offer contingent on the sale of their current home.” Selling first also frees up cash so repeat buyers can be more aggressive in the offers they make.
While mortgage rates dropped out of the top five concerns for buyers in the second quarter of 2015, when asked specifically how important mortgage rates are in their decision to buy, three-fourths of the respondents said they were either “very important” or “important.”
To read the report, complete with a rundown of the survey responses, please visit: https://www.redfin.com/research/reports/2015/home-prices-weigh-heavily-on-buyers-as-mortgage-rate-worry-recedes.html
About the Q2 2015 Real-time Buyer Survey
This survey was conducted between July 27-29, with responses from 3,577 Redfin customers in the following U.S. markets: West: Albuquerque, Bend, Boulder, CO, Colorado Springs, Denver, Fresno, Hawaii, Los Angeles, Las Vegas, Orange County, CA, Phoenix, Portland, Riverside-San Bernardino, CA, , San Diego, San Francisco, San Jose, CA,, Seattle, Tacoma, WA, Tuscon, Ventura County, CA; South: Atlanta, Austin, Baltimore, Charlotte, Charleston, SC,, Columbia, SC, Dallas – Fort Worth, Columbia, SC, Fort Lauderdale, Greenville, SC, Hampton Roads, VA, Houston, Jacksonville, Knoxville, TN, Memphis, Miami, Nashville, Oklahoma City, Orlando, Raleigh-Durham, Richmond, VA, San Antonio, St. Louis, MO, Tampa, FL, West Palm Beach, FL; Midwest: Chicago, Detroit, Indianapolis, Louisville, KY, Madison, WI, Milwaukee, Minneapolis-Saint Paul, New Orleans, Omaha, NE, St. Louis, MO, Salt Lake City, UT; Northeast: Allentown, Baltimore, Boston, Bronx, Buffalo, NY, Long Island, NY, Portland, ME, New Hampshire, New Jersey, Philadelphia, Pittsburgh, Queens, Providence, RI, Washington, D.C.-MD-VA, Staten Island, NY.
Redfin (www.redfin.com) is a next-generation real estate brokerage that represents people buying and selling homes. Founded by technologists, Redfin employs a team of experienced, full-service real estate agents who are advocates, not salespeople, earning customer-satisfaction bonuses, not just commissions. Redfin.com features all the broker-listed homes for sale, as well as for-sale-by-owner properties that don’t pay brokers a commission. Redfin also offers online tools, built by its own software engineers, that make the entire process of buying or selling a home easier and more fun. The company serves major markets across the U.S. and has closed nearly $20 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World’s Most Valuable Private Tech Companies by Business Insider.