Wednesday, August 4, 2021 / by Ken Couture
IBuyer purchases have returned to pre-pandemic levels. According to a new report by Redfin on iBuying, the houses they buy are cheaper than the houses they usually buy, and they sell their inventory in 13 days, a record rate.
IBuyers offers instant cash discounts to home sellers who want to avoid selling their homes publicly. Companies such as Opendoor and Offerpad provide such iBuyer services, but some real estate agents (such as Keller Williams, Coldwell Banker, and Redfin) also provide such services.
“Business really started ramping up in January and February,” said Allister Booth, an acquisitions specialist at RedfinNow in Los Angeles. “Since then, we’ve just had a constant barrage of deals. We’re back to full speed and are buying more homes than we were last year. After we buy and renovate those homes, we know we’ll be able to sell them because there are so many more buyers in the market right now than there are homes available.”
IBuyers continue to account for a small portion of home sales. They only bought 0.5% of the houses, which is 4,383 houses sold in 418 metropolitan areas in the first quarter. However, Redfin reported that iBuyer purchases in the first quarter were up 20.6% compared to the previous quarter.
The top markets are Raleigh, North Carolina, where iBuyers purchased 2.9% of the homes sold in the first quarter, and Charlotte, North Carolina, where sales were 2.7%. Other market leaders for iBuyer sales are located in Durham, North Carolina. (2.6%); San Antonio, Texas (2.6%); Tucson, Arizona (2.3%); and Phoenix (2.2%).
According to a report by Redfin, iBuyers is buying homes at a price lower than the median price in the metropolitan area. The average purchase amount for iBuyers in the first quarter was $ 302,050, while the average purchase amount for a typical American home buyer was $ 320,000.
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