SEATTLE--(BUSINESS WIRE)--Nine out of 10 real estate agents agree that now is a good time to sell a home, according to Redfin (www.redfin.com), the next-generation real estate brokerage. In a survey of more than 800 Redfin agents across the country conducted earlier this month, 89 percent responded that now is a good time to sell, up from 83 percent last year. This is the highest percentage of agents reporting now is a good time to sell since Redfin began conducting this survey in 2012. On the other hand, the number of agents reporting that now is a good time to buy fell from 45 percent last year to 34 percent in March -- the lowest result recorded since 2012.
One out of three agents named low inventory as the greatest challenge sellers currently face. That is up from one in six agents surveyed in November of 2015 -- a significant change in sentiment in just four months.
“Many of my prospective home-selling clients start the process by shopping for a replacement home first before they pull the trigger on listing their home,” said Redfin real estate agent Sabrina Booth. “Once they experience how competitive the market is for homebuyers it gives them pause, and some choose not to sell. There are options for these folks though. One way my clients have solved this problem is to take a home equity line of credit and use it as a down payment for their replacement home before listing their current home for sale.”
This dynamic presents a unique challenge for prospective home sellers who are also in the market to buy a home, and for the market as a whole.
“The lack of existing and new homes for sale has fed a vicious cycle of low supply for the past year,” said Redfin chief economist Nela Richardson. “Builders still aren’t providing enough new construction to satisfy demand, which means the market is desperately relying on homeowners to decide to sell. The good news is we are seeing some improvement with a 12 percent increase in new listings this February, a trend we see continuing into March as well.”
The good news for buyers is that sellers this quarter are much less likely to have unrealistic expectations about their home’s value, with 34 percent of Redfin agents indicating that was their selling clients’ biggest challenge, a marked drop from 57 percent in late 2015.
Faced with a bidding war, Redfin agents suggest that buyers who can’t offer all cash consider waiving contingencies. Forty-seven percent of respondents said waiving contingencies or making other concessions is the most effective strategy for getting an offer accepted. Only 15 percent said being the first to make an offer was the best strategy.
About the Survey
Redfin’s survey was conducted between Mar. 10 and Mar. 13, and includes responses from 836 homebuyers in 38 states and Washington, D.C.
To read the full report, please visit: https://www.redfin.com/blog/2016/03/q1-2016-redfin-agent-survey.html.
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About Redfin
Redfin (www.redfin.com) is a next-generation real estate brokerage that represents people buying and selling homes. Founded by technologists, Redfin employs a team of experienced, full-service real estate agents who are advocates for their clients, earning customer-satisfaction bonuses, not just commissions. Redfin.com features all the broker-listed homes for sale, as well as for-sale-by-owner properties that don't pay brokers a commission. Redfin also offers online tools, built by its own software engineers, that make the entire process of buying or selling a home easier. The company serves more than 80 major markets across the U.S. and has closed more than $25 billion in home sales. In 2014, Redfin was included in CNBC’s Disruptor 50 list as an innovator that is revolutionizing the real estate industry.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center.
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