Buyers, despite low inventory and high prices are still finding ways to purchase houses. According to a realtor.com survey, 51% of homebuyers did not pay above asking price for their home purchases, regardless of concern over the prospect of multiple offers. 42% of all homebuyers made one or two offers at most, and 34% said they were “unfazed” by increases in prices and rates. They have shown success against seemingly impossible odds.
Over 30% of home buyers were able to put in a down payment of over 20% (which is generally favorable). Most of these buyers were on the older side (55+), bought 3 bedroom, 2 bathroom home, made 4 or fewer offers, and were in the market for 6 months or less. Contrarily, the majority of younger buyers spent a longer time in the market, and typically paid above asking.
According to Danielle Hale, chief economist at realtor.com, “Successful homebuyers in 2018 have been exceptionally well-qualified. We are seeing the impact of the inventory crisis in the data, and it’s holding back home sales. While would-be buyers struggle with limited inventory, rising prices and mortgage rates, those who closed were undeterred by today’s buyer frenzy. This is likely attributed to their experience, cash, and perhaps the market they’ve chosen to buy in.”