Key Highlights

  • iBuyer purchases plunged -88% in Q2, according to Redfin
  • iBuyer purchases accounted for 0.1% of homes sold in Q2 2020 compared to 0.6% in Q2 2019
  • iBuyers spent $195M buying homes in Q2 2020 compared to $1.6B in Q2 2019 

The top iBuyers in the country purchased only 880 homes in Q2 2020, according to a study by Redfin. These 880 purchased homes by a combination of RedfinNow, Offerpad, Opendoor and Zillow iBuyers represent a whopping -88% decrease in Q2 2020 compared to the 7,410 home purchased by these iBuyers in Q2 2019.

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(The figures in this latest Redfin study of iBuyers include the COVID-19 pandemic-caused “pause” to iBuying that all four of these largest iBuyers had to withstand.)

Just 0.1% of homes sold across +400 metro areas were iBuyer purchased homes, a decrease from 0.6% last year during the same Q2 time period. Together, these four iBuyers spent only $195M in Q2 2020 purchasing homes whereas in Q2 2019, these four iBuyers spent $1.6B.

That being said, iBuyers have and are continuing to benefit from massive buyer demand into Q3 2020. iBuyer bidding wars have increased since the top iBuyers began buying homes again plus sellers still need, said Jason Aleem, vice president of RedfinNow, “…liquidity, certainty and a safe and contactless way to sell their home. Homeowners are seeking out offers from multiple iBuyers so they can feel confident they are getting the best possible price in this blazing hot market without a bunch of foot traffic coming through.”

According to local MLS and public record data, iBuyers bought less expensive homes in Q2 2020 than in Q2 2019. The median home purchased was $241,100, down from $250,000.

On the selling side, homes listed by iBuyers essentially flew off the shelf in Q2 2020 with a median DOM of 13 days compared with 40DOM in Q2 2019. The typical non-iBuyer listing “languished” on the market for 37 days in Q2 2020.

 

Thanks to Redfin and InmanNews.

Also read: Where Are New Home Sales Growing the Fastest?, Trends in Home Prices Through 2020, Where Is Most and Least Affordable?