This spring’s bidding wars have left some local buyers with battle scars, according to a new survey from net-centric brokerage Redfin.
The firm polled more than 980 buyers nationwide actively in the hunt or in the process of closing a deal, and found that only 46 percent of respondents thought now was a good time to buy, down from 56 percent at the beginning of the year.
It seems they think the other side of the table is getting the best of it: 32 percent believe now is a good time to sell, up from only 13 percent in the first quarter.
Boston buyers were no different: 46 percent thought it was a good time to buy, while 30 percent thought it was a good time to sell. A strong majority – 63 percent – of Boston buyers said they think prices are rising this year, and 79 percent think we’ll see increases next year.
That might add up to good news for agents – with rates still very low and the vast majority of buyers anticipating higher future prices, that could push people to plunge into the market now. But the low inventory and competitive environment for good houses is bruising buyer’s confidence.
"Homebuyers are getting frustrated and discouraged," Adam Welling, Boston area manager for Redfin, told Banker and Tradesman.
That’s reflected in the number of buyers eager to purchase: In the first two quarters of the year, nearly 60 percent of buyers surveyed by Redfin were either under contract or planning to purchase in the next three months. In third quarter, only 50 percent were on the verge of purchasing, both in Boston and across the country. More than half of Boston buyers surveyed who had made an offer found themselves competing against multiple bids.
"The value-driven investors scooping up foreclosures for pennies on the dollar have largely been replaced by first-timers seeking to buy a pretty house now when mortgage rates are below 4 percent. With so few houses for sale, many will come up empty. The only homeowners willing to sell now mostly are the ones who have to, for a job in a new city or for a new baby," wrote Redfin CEO Glenn Kelman in a blog post on the results. "Low prices and low home-equity have resulted in a largely illiquid market for the past two years, and so – no matter how low mortgage rates get – sales volume will remain log-jammed until higher prices draw more move-up sellers into the market."
