Rents across the nation are too high, which is causing one in four home buyers to want to purchase a home according to Redfin staffer Alex Starace and a Redfin survey of 750 buyers this month. This number is up from November's results of one in five and one in eight in August.
Affordability was the top reason cited for buyers looking to purchase a home, second only to major life events such as marriage or having a child. But, inventory is low, and 20% of buyers (an increase of four percentage points from last quarter) fear there won't be enough homes to choose from, with 16% of buyers stating that they felt too much competition on the market.
Sixty percent of buyers said they’d stay disciplined if in a bidding war, but pay a little more, up from 58% last quarter and 55% in August. Twenty-seven percent said they’d step back to avoid overpaying, while 12% would compromise on a lower-priced or less-competitive home. Only 1% of buyers said they’d pay whatever it takes to get a home.
Buyers currently feel more inclined to buy now compared to their intentions one year ago, and 31% of buyers reported that they feel an increased urgency to buy before mortgage rates and prices increase.