SEATTLE — May 27, 2016 — Affordability is the main concern keeping homebuyers up at night, according to a survey of 975 buyers conducted this month by Redfin (www.redfin.com), the next-generation real estate brokerage.
One in four respondents cited affordability as their top concern in buying a home, making it the most common response. Competition was the next-most common worry, cited by one in five homebuyers, a number that has increased from one in 10 in November. These concerns are justified: last month home prices were up 5 percent from a year ago, and 60 percent of Redfin offers have faced competition thus far in May.
Many of those looking to buy are fleeing an expensive rental market. About one in four homebuyers surveyed this month cited high rent as their reason for house hunting, a significant jump since last summer.
The change is attributable to first-time buyers. In the most recent survey, more than fifty percent said high rent led them to the market, as compared to only 25 percent of first-timers in August.
“Though enticed by high rents and low mortgage rates to begin a home search, first-time buyers face a number of obstacles in today’s competitive market,” said Redfin chief economist Nela Richardson. “In many cities, starter homes have seen the largest price increases because the supply of affordable homes on the market is so low and the demand for these homes is so high.”
Buyers were asked to choose up to three of the most important factors in a home, beyond square footage and price. Three choices rose to the top: the layout, finishes and design were most important (46%), followed by school quality (41%) and a yard or green space (39%). Ease of commute came in fourth, checked off by 32 percent of respondents.
About the Survey
Redfin’s survey was conducted between May 17 and May 23, and includes responses from 975 homebuyers in 36 states and Washington, D.C.
To read the full report, please visit: https://www.redfin.com/blog/2016/05/homebuyers-worry-about-cost-and-competition.html
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the customer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the industry’s most accurate home-value estimate, the Redfin Estimate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commission. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $31 billion in home sales, and saved customers more than $335 million in fees, and counting.