Buyers Worried They’re Losing Bargaining Power

While home buyers have been holding a lot of bargaining power in the housing market the last few years, more of them say they are now feeling the market shift against them, according to a new survey.

Seven in 10 home buyers say they’ve faced competition on a home for at least one offer, according to a recent survey of 982 buyers in 19 markets conducted by Redfin. Of those surveyed, 46 percent say now is a good time to purchase a home — that’s down from 56 percent in the first quarter. On the other hand, the number of those who are saying it’s a good time to sell grew by 13 percent in that period. Thirty-two percent now say it’s a good time to sell.

“Many buyers who emerged from hibernation this spring eager to take advantage of low rates and near-bottom prices now seem to have become demoralized by the intense competition for a limited selection of homes for sale,” Redfin said in a public statement about the survey results.

Home buyers may feel more urgency too. The survey found the number of buyers expecting home prices to rise drastically grew — 61 percent say prices will rise compared to 32 percent during the first quarter. However, they are reluctant to get in a multiple-offer situation. Thirty-one percent of those surveyed said that if they faced a multiple-offer situation, they would back off.

Source: “Survey: Buyers Think Market Is Shifting Against Them,” Inman News