SEATTLE, Sept. 7, 2021 /PRNewswire/ -- iBuyers are
poised to sell a record number of homes in the third quarter of
2021 after setting an all-time high for home purchases in Q2, a new
Zillow® analysis shows.
Zillow's analysis examines the purchases and sales of the four
largest U.S. instant buyers — including Zillow Offers — in 33
markets across the country, starting in 2018. Instant buyers,
commonly known as iBuyers, are home buying and selling services
that typically buy off-market homes directly from sellers at market
rate and quickly list them for sale on the open market after making
light repairs and updates.
"The growing number of homeowners using an iBuyer service
clearly demonstrates that sellers desire an easier way to sell
their homes, with more certainty and less stress, even in a hot
sellers market," said Zillow Chief Operating Officer Jeremy Wacksman. "iBuyers remove some of the
traditional home selling pain points, unsticking homeowners
previously put off by the hassles of selling a home or worried
about timing their next purchase. This brings net-new inventory to
the market, mainly at an affordable price point near the middle of
the market, adding liquidity to the market that has traditionally
been difficult for consumers to navigate."
iBuyers — unlike some other real estate companies that acquire
homes to hold or rent out — make light repairs on the homes they
purchase and then quickly resell those homes on the open market.
Rather than taking homes off the market or investing in large
remodels to significantly increase the value of a home, iBuyers act
as a connection point between sellers and the eventual buyers. In
Q2, 83.6% of homes sold to one of the four largest iBuyers — Zillow
Offers, Opendoor, RedfinNow and Offerpad — had not been previously
listed for sale on the open market, adding liquidity to the
market.
Homeowners used an iBuying service to sell more than 15,000
homes in Q2 for a total of nearly $5.3
billion. That's up from about 7,000 homes sold through an
iBuyer for $2.1 billion in Q1, and
breaks the previous quarterly record of about 10,400 homes for
almost $2.8 billion in Q3 2019.
Market share for iBuyers in Q2 reached 1% of all U.S. home
sales for the first time.
The record number of homes sold using an iBuying service last
quarter means it's likely the number of homes listed on the open
market and sold by iBuyers to consumers will increase accordingly.
iBuyers typically held homes they sold in Q2 for 64 days, which
included getting the home ready to sell, time the home spent on the
market and time to close.
The record-breaking quarter came during perhaps the strongest
sellers market in recent memory. Homes often went pending
within a week of being listed on the market and more than a third
sold above list price. Even amid a market that is largely
advantageous to sellers, this analysis shows the convenience,
certainty and control offered when selling with an iBuyer are still
valued, and may even be preferable when trying to time the purchase
of their next home in a competitive market.
The metro areas with the most home sales using an iBuying
service in Q2 were Atlanta,
Phoenix and Dallas. iBuyers had a market share of 5% or
more in Phoenix, Charlotte and Atlanta.
iBuyers tend to buy and sell homes near the median sale price in
a given metro area, adding liquidity for relatively affordable
homes that are often in high demand. In 23 of the 33 largest iBuyer
markets, the median price for homes iBuyers purchased was within
10% of the market's overall median sale price. The national median
price of a home sold to an iBuyer was 3.6% higher than the overall
U.S. median sale price, likely because iBuyers tend to operate in
larger, more expensive markets.
The overall median sale price in top iBuyer markets typically
grew 9.1% from Q1. Amid this rapid rate of home price appreciation,
the homes that iBuyers sold during Q2 typically went for 9.6% more
than the purchase price.
|
Total iBuyer
Purchases
|
iBuyer Market
Share
|
Median
Price
|
Metro
Area*
|
Q2
2021
|
Q1
2021
|
Q2
2021
|
Q1
2021
|
iBuyer
Purchases
|
All
Sales
|
United
States
|
15,028
|
7,056
|
1.0%
|
0.6%
|
$335,000
|
$323,470
|
Atlanta,
GA
|
1,987
|
968
|
5.3%
|
3.3%
|
$275,700
|
$326,335
|
Phoenix,
AZ
|
1,744
|
798
|
5.7%
|
3.0%
|
$391,650
|
$391,322
|
Dallas–Fort Worth,
TX
|
1,321
|
645
|
4.3%
|
3.0%
|
$312,981
|
$347,351
|
Charlotte,
NC
|
852
|
422
|
5.3%
|
3.4%
|
$290,650
|
$330,759
|
Houston,
TX
|
850
|
362
|
2.8%
|
1.7%
|
$279,600
|
$302,509
|
Tampa, FL
|
643
|
328
|
2.9%
|
1.8%
|
$276,500
|
$292,597
|
Orlando,
FL
|
629
|
299
|
3.8%
|
2.4%
|
$303,100
|
$311,480
|
Las Vegas,
NV
|
532
|
296
|
4.0%
|
2.5%
|
$367,900
|
$354,919
|
Jacksonville,
FL
|
483
|
248
|
4.1%
|
2.8%
|
$259,750
|
$302,614
|
San Antonio,
TX
|
482
|
286
|
4.4%
|
3.5%
|
$262,770
|
$279,755
|
Raleigh,
NC
|
434
|
213
|
5.0%
|
3.3%
|
$317,000
|
$359,843
|
Denver, CO
|
413
|
142
|
2.5%
|
1.3%
|
$500,000
|
$540,337
|
Nashville,
TN
|
413
|
205
|
2.8%
|
1.9%
|
$316,600
|
$364,591
|
Riverside,
CA
|
400
|
146
|
2.0%
|
0.9%
|
$496,500
|
$481,981
|
Los Angeles–Long
Beach–Anaheim, CA
|
389
|
208
|
1.2%
|
0.8%
|
$769,500
|
$818,184
|
Sacramento,
CA
|
345
|
108
|
3.3%
|
1.5%
|
$513,000
|
$537,471
|
Austin, TX
|
332
|
120
|
3.0%
|
1.7%
|
$413,800
|
$481,817
|
Portland,
OR
|
320
|
121
|
2.3%
|
1.2%
|
$480,750
|
$495,332
|
Tucson, AZ
|
291
|
151
|
4.3%
|
2.7%
|
$286,550
|
$296,488
|
Minneapolis–St. Paul,
MN
|
261
|
116
|
1.3%
|
0.9%
|
$298,300
|
$341,822
|
San Diego,
CA
|
197
|
75
|
1.7%
|
0.9%
|
$691,500
|
$743,573
|
Daytona Beach,
FL
|
139
|
62
|
2.3%
|
1.3%
|
$252,750
|
$275,805
|
North
Port–Sarasota-Bradenton, FL
|
123
|
55
|
1.3%
|
0.7%
|
$319,550
|
$350,226
|
Miami–Fort
Lauderdale, FL
|
119
|
62
|
0.3%
|
0.2%
|
$344,800
|
$359,228
|
Lakeland,
FL
|
116
|
66
|
2.5%
|
1.8%
|
$235,250
|
$247,782
|
Cincinnati,
OH
|
97
|
36
|
1.0%
|
0.5%
|
$245,400
|
$231,723
|
Seattle,
WA
|
95
|
33
|
0.5%
|
0.2%
|
$610,000
|
$652,705
|
Colorado Springs,
CO
|
67
|
23
|
1.3%
|
0.6%
|
$418,200
|
$430,922
|
Washington,
D.C.
|
49
|
5
|
0.1%
|
0.0%
|
$552,500
|
$495,135
|
Greensboro,
NC
|
46
|
20
|
2.1%
|
0.7%
|
$221,500
|
$182,560
|
Birmingham,
AL
|
42
|
25
|
0.7%
|
0.5%
|
$171,475
|
$250,658
|
Winston-Salem,
NC
|
37
|
8
|
1.8%
|
0.3%
|
$195,000
|
$181,733
|
Fort Collins,
CO
|
32
|
16
|
1.1%
|
0.9%
|
$453,650
|
$455,317
|
*Includes all markets where iBuyers purchased more than 30
homes in Q2 2021. Table is ordered by the number of iBuyer
purchases.
Research Methodology
This analysis tracks home
purchases and sales by the four largest iBuyers: Zillow Offers,
Opendoor, Offerpad and RedfinNow. Other iBuyers were excluded
because of low transaction counts. iBuyer transactions were
identified using a combination of public records, Zillow's own data
and proprietary datasets from outside of Zillow. Through this
combination of Zillow data and public data, we are able to capture
an accurate and timely picture of the iBuyer market.
National figures cited throughout the report include all U.S.
transactions. The metro-by-metro table includes only the 33 metro
areas with more than 30 homes sold using an iBuyer service in Q2.
Market shares are calculated by dividing total iBuyer purchases by
an adjusted version of Zillow's headline sales metric that includes
nontraditional transactions like those done by iBuyers and other
business entities. Other statistics in this report are calculated
only when there is sufficient data to provide an accurate
statistic.
About Zillow Group:
Zillow Group, Inc. (NASDAQ: Z and
ZG) is reimagining real estate to make it easier to unlock life's
next chapter.
As the most visited real estate website in the United States, Zillow® and its
affiliates offer customers an on-demand experience for selling,
buying, renting or financing with transparency and nearly seamless
end-to-end service. Zillow Offers® buys and sells homes
directly in dozens of markets across the country, allowing sellers
control over their timeline. Zillow Home Loans™, our affiliate
lender, provides our customers with an easy option to get
pre-approved and secure financing for their next home purchase.
Zillow recently launched Zillow Homes, Inc., a licensed brokerage
entity, to streamline Zillow Offers transactions.
Zillow Group's brands, affiliates and subsidiaries include
Zillow®; Zillow Offers®; Zillow Premier
Agent®; Zillow Home Loans™; Zillow Closing Services™; Zillow Homes,
Inc.; Trulia®; Out East®;
StreetEasy® and HotPads®. Zillow Home Loans,
LLC is an Equal Housing Lender, NMLS #10287
(www.nmlsconsumeraccess.org).
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SOURCE Zillow