SEATTLE, Sept. 28, 2021 /PRNewswire/ -- The
record-setting housing market has brought anecdotes of frustrated
home shoppers being repeatedly outbid and using risky strategies,
such as waiving contingencies, to be competitive. But new data from
Zillow's Consumer Housing Trends Report1 debunks common
misconceptions that all buyers have the same experience, and shows
the reality for most is not as grim.
The typical buyer surveyed this year submitted just two offers
before one was accepted, up from one in each of the previous three
years. A vast majority of buyers (88%) had an inspection done
before they closed on their new home.
"Our 2021 survey of buyers found buying a home got more
challenging in the past year, but many buyers were ultimately
successful in landing a home without taking unnecessary risks,"
says Manny Garcia, a Zillow
population scientist. "Most buyers continue to get inspections, and
sellers appear to prioritize higher offers over waived inspections.
Most buyers are ultimately achieving homeownership by doing their
research, making trade-offs, and considering a diverse array of
options."
The survey finds first-time buyers do generally struggle more
than repeat buyers. First-time buyers tend to have smaller down
payments -- in large part because they are much less likely to have
equity from a previous home -- which can make their offers seem
less competitive. About two-thirds (67%) of first-time buyers
submit more than one offer, compared to 54% of repeat buyers.
Before the offer comes the shopping, and the survey shows that
the pandemic brought some changes in how buyers shop for, view and
tour homes. While desire for virtual tools and 3D home tours is
growing, home shoppers still value seeing a home in-person before
making an offer. Nearly all buyers surveyed took a private tour
before putting in an offer, and most attended at least one open
house. In 2020 and 2021, the typical buyer went on three private
tours -- up from just one in previous years -- and only 5% skipped
a private tour completely. Despite the pandemic, most home shoppers
are also still going to at least one open house. The typical buyer
went to one open house, and over half (56%) attended between one to
four.
"So many buyers are hearing horror stories from friends and
family about the housing market, so it's important to educate
buyers about the local market so they can make the best decision
for their family," says Tom Toole,
Team Lead at Tom Toole Sales Group at RE/MAX Main Line. "Buyers
still strongly prefer in-person tours, but virtual tours help
people see a home if circumstances don't allow and have helped a
number of buyers get a speed advantage in the market. Virtual tools
are a great addition to help buyers decide what houses they want to
go see in-person."
Although in-person viewing remains a priority for home shoppers,
the desire for 3D and virtual tours is also high and increasing
from past years. Survey respondents agreed that 3D tours would help
them get a better feel for the home than static photos (68%), wish
more listings had 3D tours available (61%), and prefer to schedule
in-person tours online (61%).2 All of these categories
increased since 2020, showing buyers value virtual tools because
they make it easier to shop for a home. Additionally, the share of
buyers who say they are at least somewhat confident making an offer
after seeing a virtual tour, but not an in-person viewing,
increased from 55% to 58% this year.
The fall market has shown early signs of cooling as home value
appreciation begins to slow and inventory continues to grow each
month. Even though sellers are still firmly in the driver's seat,
buyers may find more options and less competition, making this a
potentially more manageable market.
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).
1 Zillow Group Population Science conducted a
nationally representative survey of more than 2,000 buyers. The
study was fielded between March and August
2021. For the purpose of this study, "buyers" refers to
household decision makers 18 years of age or older who moved to a
new primary residence that they purchased in the past year. For
more information on methodology, please contact
press@zillow.com
2 The percentages in this sentence refer to the
share of buyers that said they agreed somewhat or completely with
each statement.
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SOURCE Zillow