SANTA CLARA, Calif.,
March 22, 2018 /PRNewswire/ -- The
2018 spring buying season is expected to be one of the most
competitive seasons in years, driven by spill-over buyers from last
year and record-breaking inventory lows. Despite their willingness
to resort to brash tactics to get a leg up, buyers remain
optimistic about closing on their dream home, according to new
survey data released today by realtor.com®, a leading
online real estate destination.
"We're only a few weeks into March and already seeing the market
heat up," said Danielle Hale, chief
economist for realtor.com®. "Holdover buyers hoping for
greener pastures this spring are likely to find sparse options that
require them to pay top-dollar or make other concessions."
Buyer demand is booming, which is reflected in today's falling
inventory and fast time on market. Despite record-low levels,
inventory has been declining for 42 consecutive months and is
currently down 8.5 percent from a year ago, according to
realtor.com® listing data. Days on market in February
was at 83 days, a record for that month.
A large portion of this demand is being driven by buyers who are
holdovers from last summer and beyond, according to an online
survey of more than 1,000 active buyers conducted in early March by
Toluna Research.
The survey showed 40 percent of today's buyers have been
searching for more than seven months, while an additional 34
percent have been searching for four to six months. Slightly more
than a quarter – 26 percent – have been in the market three months
or less.
More than one-third -- 35 percent -- of those surveyed indicated
they anticipate "a lot of competition" this spring, while 36
percent expect some competition, which could explain why many seem
to be approaching the housing market strategically.
When asked about all the strategies they are using to get ahead,
42 percent revealed they are checking listing websites every day,
while 40 percent of buyers plan to put more than 20 percent cash
down. The survey also revealed that 33 percent are setting price
alerts, 31 percent plan to put a larger earnest money deposit down,
and 26 percent are willing to offer above asking price. Only 6
percent indicated they are not planning to use any tactics to cope
with competition.
"The majority of buyers are aware of the tough competition
they're up against this spring. Having been in the market awhile,
they've likely lost a few homes to better offers, which has given
them more time to save and up their bidding strategies," added
Hale.
Despite the competition, buyers remain confident about closing
on a home and are willing to stay the course. Nineteen percent of
buyers expect to close in zero to three months, 34 percent of
buyers expect to close in four to six months, 18 percent anticipate
closing in seven to nine months, 15 percent in 10 to 12 months, and
15 percent expect it to take more than a year.
About realtor.com®
Realtor.com® is the trusted resource for
home buyers, sellers and dreamers, offering the most comprehensive
source of for-sale properties, among competing national sites, and
the information, tools and professional expertise to help people
move confidently through every step of their home journey. It
pioneered the world of digital real estate 20 years ago, and today
helps make 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:
Lexie Puckett Holbert:
lexie.puckett@move.com
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SOURCE realtor.com