What began as an experiment six years ago, iBuying in residential real estate, is now blossoming into a multi-billion home buying market segment within the housing industry. Not only does iBuying show no signs of “going away,” iBuying is attracting more players into this sector and is expanding its footprint.
Opendoor broke the ice for this iBuying movement in Phoenix in 2014 and, just five years later, there are now countless players generating huge institutional interest and investments. Phoenix continues to be iBuying’s epicenter but the South gets most of the action due to housing affordability and availability. Why? iBuyers rely heavily on data and algorithms when evaluating potential properties so the more alike and consistent properties are, the better for iBuyers and its respective profits.
Here is a current list, as of April 29 2019, of iBuyers’ presence by cities, median sales prices and 5-year price percentage changes, according to CoreLogic:
City Companies Med. Sales Price 5-yr % Change
Atlanta Offerpad $209,000 +62.4%
Opendoor
ZillowOffers
Austin Offerpad $306,250 +40.2%
Opendoor
Charlotte Offerpad $210,000 +38.2%
Opendoor
ZillowOffers
Dallas Offerpad $253,865 +43.3%
Opendoor
ZillowOffers
RedfinNow
Denver Offerpad $390,000 +60.5%
Opendoor
RedfinNow
Houston Offerpad $227,455 +29.8%
Opendoor
ZillowOffers
Jacksonville Opendoor $200,000 +52.2%
Las Vegas Offerpad $261,020 +71.2%
Opendoor
ZillowOffers
Los Angeles Offerpad $630,000 +43.2%
Opendoor
RedfinNow
Minn/St Paul Opendoor $248,500 +38.1%
Nashville Opendoor $245,000 +55.6%
Orlando Offerpad $225,000 +64.6%
Opendoor
Phoenix Offerpad $250,000 +43.5%
Opendoor
ZillowOffers
Portland Opendoor $372,000 +53.1%
Raleigh Offerpad $251,000 +33.5%
Opendoor
ZillowOffers
Riverside Opendoor $347,000 +52.9%
ZillowOffers
RedfinNow
Sacramento Opendoor $380,000 +52.0%
San Antonio Offerpad $211,639 +32.0%
Opendoor
San Diego RedfinNow $553,000 +39.6%
Tampa Offerpad $195,000 +62.6%
Opendoor
Tucson Offerpad $200,000 +29.0%
Opendoor
Salt Lake Offerpad $311,243 +44.3%
For another current (April 29 2019) visual, the major iBuyers are present in the following cities:
Opendoor
Phoenix & Tucson
Sacramento & Riverside
Denver
Tampa, Jacksonville, & Orlando
Atlanta
Las Vegas
Charlotte & Raleigh-Durham
Portland
Minneapolis & St. Paul
Nashville
Austin, Dallas-Fort Worth, Houston & San Antonio
Offerpad
Phoenix & Tucson
Los Angeles
Orlando & Tampa
Atlanta
Las Vegas
Charlotte & Raleigh-Durham
Austin, Dallas-Fort Worth, Houston & San Antonio
ZillowOffers
Phoenix
Riverside
Denver
Atlanta
Las Vegas
Charlotte & Raleigh-Durham
Dallas-Fort Wroth & Houston
RedfinNow
San Diego, Los Angeles I Inland Empire
Denver
Dallas-Fort Worth
With these kinds of upticks in price percentage increases, footprints and numbers of businesses, Corelogic predicts that it is “likely to expect serious growth on the horizon” for the iBuyer movement.
