The number one homebuyer concern remains affordability, but fears over buyer competition are growing and may soon trump it, according to a new housing survey of nearly 1,000 home buyers conducted by the real estate brokerage Redfin.
Read more: Buyers Need to Be Ready for Some Competition
Buyer concern about competition has nearly doubled in the last seven months alone. Nearly 19 percent of buyers surveyed in May cited competition from other buyers as their top worry, up from 11 percent in November.
Home buyers are still most concerned about affordability, however, with 26 percent of the buyers surveyed calling that their chief concern. Fifteen percent of buyers cited low inventory problems as their top concern.
“Though enticed by high rents and low mortgage rates to begin a home search, first-time buyers face a number of obstacles in today’s competitive market,” says Nela Richardson, Redfin’s chief economist. “In many cities, starter homes have seen the largest price increases because the supply of affordable homes on the market is so low and the demand for these homes is so high.”
Source: “Competition About to Be the Next Top Homebuyer Concern?” HousingWire (May 27, 2016)
Reprinted from REALTOR® Magazine Online (http://realtormag.realtor.org), May 31, 2016, with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2016. All rights reserved.