Fewer American homebuyers in Q2 think it is good time to buy than in previous quarter, percentage who think it is good time to sell rises to 67%, up from 48%; more Americans willing to pay higher prices because of declining inventory: Redfin

Allison Oesterle

SEATTLE , May 23, 2013 (press release) – Frustration with Low Inventory and Concern over Rising Home Prices Continue

Redfin (www.redfin.com), a technology-powered real estate broker, today released its latest survey of homebuyers. Data was collected from May 17 through May 21, capturing sentiment of 1,353 active homebuyers across 22 U.S. markets who had recently toured a home with a Redfin agent. The Redfin Real-Time Homebuyer Survey is a companion to the quarterly Home-Seller Survey and Agent Survey.

Respondents cite low inventory and rising prices as key concerns when shopping for a home, but while the percentage of people worried about inventory has remained steady throughout 2013, concern about rising home prices has more than doubled year over year. Despite this, homebuyers are accepting the reality of a seller's market and expressing a willingness to pay more. Notably, unease about the overall economy continues to recede.

Results Snapshot:

• Moving toward consensus that this is a seller's market: Just 31% of buyers believe now is a good time to buy in their neighborhood, down from 40% last quarter. More than twice as many--67%--see now as a good time to sell, up from 48% last quarter.
• Increasingly willing to pay more: Forty-one percent of buyers indicated that low inventory has caused them to consider paying more for a home, up from 34% in the first quarter and just 26% in the fourth quarter.
• Homebuyers anticipating further price increases remained unchanged: The percentage of homebuyers who anticipate further price increases in their neighborhood remained virtually unchanged from last quarter. Both quarters, 79% indicated a belief that prices will increase in the next 12 months. This quarter, 23% think prices will rise "a lot," up just slightly from 22% last quarter.
• Rising prices are an increasingly common concern: Forty-eight percent of buyers listed rising prices as a major concern, up from 40% last quarter.Sixty-five percent cited low inventory as a major concern in the first quarter, down slightly from 66% last quarter.

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