Lack of Homes, Rising Prices Top Worries for Buyers
Potential homebuyers are worried about the inventory shortage and rising prices in regards to current market conditions, the Redfin Real-Time Homebuyer Survey found.
The data cover the period between May 17 and 21, with 1,353 active buyers in 22 markets as respondents.
Redfin noted that while the percentage of people who are concerned about inventory levels has been stable (65%, down from 66% in 1Q13), concern about rising prices has more than doubled on a year-over-year basis.
Still, these buyers are aware it is a sellerís market and thus they are willing to pay more. Over four in 10 said the low inventory has made them consider paying more for a house, up from 34% in 1Q13 and 26% in 4Q12.
Almost eight in 10 expect prices to continue to increase over the next 12 months. This is similar to the 1Q13 findings.
Just 31% of buyers believe now is a good time to buy in their neighborhood, down from 40% in 1Q13. On the other hand, 67% said now it is a good time to sell a property, up from 48% in the same time frame.