Even though iBuyer sales are still a sliver of the market, that sliver is becoming larger. iBuyers bought 3.1% of all homes sold in Q3 2019 in 18 markets, up from just 1.8% of all homes sold throughout the entirety of 2018.
Based upon the Q3 2019 homes sales of the most prolific iBuying companies, Opendoor, OfferPad and ZillowOffers, the cities with the highest shares of iBuyer purchases included:
- Raleigh at 6.8% of total home sales
- Phoenix at 5.1% of total home sales
- Atlanta at 4.4% of total home sales
- Charlotte at 4.3% of total home sales
- ouston at 3.8% of total home sales and up from just 0.1% in 2018
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Redfin, also a firm with an iBuying segment of its business, found that iBuyers were the most active cities where the homes were priced at or below the national median price of $312,000. (How this reality bodes for iBuying outfits such as Zillow, Opendoor and Redfin that have recently expanded into Los Angeles markets where housing prices are much above this national median price is up for grabs at this point in time.)
Redfin also found that the median price of homes sold by iBuyers declined in 17 of the 18 markets where iBuying is active. Phoenix is the one and only market where the iBuyer sale price did not change in 2019.
According to Redfin’s chief economist, Daryl Fairweather, “iBuyers are concentrating their efforts in southern markets where both home sales and home prices are poised for strong growth. We think that iBuyers are likely to accelerate home sales in these markets. Homeowners who may have been reluctant to sell because they didn’t want to deal with the (selling) hassle may be persuaded by the convenience of an iBuyer sale.”
Thanks to InmanNews for source data.
Also read: Interest Rates Jump and Mortgage Applications Tank, Lux Sales in Hamptons Drop to 6-Year Low, Freddie Mac Mortgage Bankers Association Agree
