Real estate agents, who deal directly with buyers and sellers, are in a position to know firsthand what’s on the minds of both groups when it comes to home sales.
A new report from Redfin, the real estate brokerage, found buyers in the fourth quarter continued to be frustrated by the slim pickings among inventory, were willing to pay more than a seller’s asking price, and were willing to settle for less when it comes to home features.
Redfin’s national survey of 468 agents provides insight into a housing market that continues to experience tightening inventories, rising home prices and mortgage rates that continued to trend upward.
Most agents continued to think it’s a good time to buy a home (56 percent versus 55 percent in the third quarter), even if 63 percent believe sellers have “unrealistic expectations” about the value of their properties.
Among other findings:
• Eighty-seven percent of agents said limited inventory was buyers’ biggest challenge.
• Fewer agents think now is a good time to sell a home — 65 percent in the fourth quarter compared with 72 percent in the third quarter and 86 percent in the second quarter — even if the overwhelming majority still think the time is right.
• About 30 percent said buyers were “flexible on features” and were “prepared to waive contingencies” to win a bid.
The Redfin survey also found agents were concerned that rising interest rates would limit home sales, with 39 percent believing that if rates exceeded 5.5 percent sales and price growth would suffer. Other agents put the threshold at 6 percent.
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Green Real Estate Appraiser 