SANTA CLARA, Calif.,
March 21, 2019 /PRNewswire/ -- This
spring's home shoppers expect less competition overall as more
inventory continues to hit the market nationwide, but will struggle
with affordability as home prices continue to rise, according to
new survey data released today by realtor.com®, the Home
of Home Search℠. The survey also found, nearly half of shoppers
this spring are looking for homes at or under $200,000, which despite less competition will
prove difficult to find, as this one segment of housing has
actually experienced the largest inventory decline year-over-year.
Realtor.com® conducted the online survey earlier this
month, consisting of 1,015 respondents planning to purchase a home
in the next 12 months in conjunction with Toluna Research.
"The 2019 spring home buying season will be characterized by
rising home prices, a moderate pace of home sales, and an influx of
inventory," said Danielle Hale,
realtor.com®'s chief economist. "More homes on the
market and lower mortgage rates will help offset some difficulties
associated with price gains, but affordability will remain the
primary challenge for shoppers, particularly in lower price
segments."
When survey respondents were asked whether falling mortgage
rates or higher home prices had the greater impact on their search,
38 percent of respondents indicated the rising home prices, 26
percent said falling interest rates, and 35 percent said
neither.
The largest segment of shoppers heading into this spring have
been searching for a home for seven months or more - this is nearly
identical to last year. Slightly more than a quarter - 26 percent -
have been in the market four to six months, and 34 percent have
just entered the market in the last three months. This has flipped
from last year when 34 percent had been searching for four to six
months, and 26 percent had been searching three months or less.
This could be an indication that fewer shoppers started looking in
late 2018 due to the mortgage rate spike.
But with more overall inventory available to buyers this year,
competition is expected to be less intense. When asked how much
competition shoppers expect to face this year, just over 60 percent
indicated at least some competition, as compared to 70 percent last
year.
Only 17 percent of this year's shoppers plan to offer more than
asking price this year to secure their purchase, down from 26
percent last year. Similarly, 33 percent of shoppers this year
expected to put down more than 20 percent, which is significantly
less than last year's 40 percent. Only 38 percent plan to check
listings websites everyday, compared to 42 percent last year.
"The spring homebuying season is an improvement over last year
from an inventory perspective nationwide, but would-be buyers still
face challenges. This year, shoppers are going to be grappling with
their budgets, rather than competition from a horde of other
buyers. Instead of worrying about which tactics will help them get
ahead, potential buyers will have to decide what they are willing
to give up in order to stick to their budget," Hale added.
The shift in higher-end buyer mentality is likely attributed to
the recent growth in inventory, which has increased six percent
year-over-year, according to Hale, and will will give buyers more
options to choose from this spring. For example, the number of
homes priced at or above $750,000
rose by 11 percent in February. However, the number of homes priced
at $200,000 or below dropped by seven
percent year-over-year during the same time.
The drop in homes under $200,000
is likely to create a difficult environment for entry level home
buyers as nearly half of home shoppers this spring are looking for
a home at or under $200,000.
Alternatively, only six percent of spring shoppers are looking for
a home at or above $750,000 -- the
price range that saw the largest increase since last
year.
For more information, about the spring 2019 housing market,
please visit: https://www.realtor.com/research/
About realtor.com®
Realtor.com®, The Home of Home Search℠, offers an
extensive inventory of for-sale and rental listings, and access to
information, tools and professional expertise that help people move
confidently through every step of their home journey. It pioneered
the world of digital real estate 20 years ago, and today is the
trusted resource for home buyers, sellers and dreamers by making
all things home simple, efficient and enjoyable.
Realtor.com® is operated by News Corp [Nasdaq: NWS,
NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual
license from the National Association of REALTORS®. For
more information, visit realtor.com®.
Contact:
Cody Horvat:
cody.horvat@move.com
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SOURCE realtor.com