Homebuyers Willing To Pay More, Undeterred By Seller’s Market

According to the latest Home-Buyer Report from Redfin, 1,353 active surveyed buyers from across 22 metropolitan markets in the U.S. including Sacramento, San Diego, and San Francisco – all of which are feeder markets to the Lake Tahoe area – reported an understanding of the seller’s market with willingness to pay more. Twice as many buyers also believe now is a good time to sell. Key findings in the Redfin Report are as follows:

  • Moving toward consensus that this is a seller’s market: Just 31% of buyers believe now is a good time to buy in their neighborhood, down from 40% last quarter.  More than twice as many–67%–see now as a good time to sell, up from 48% last quarter.

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  • Increasingly willing to pay more: Forty-one percent of buyers indicated that low inventory has caused them to consider paying more for a home, up from 34% in the first quarter and just 26% in the fourth quarter.

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  • Homebuyers anticipating further price increases remained unchanged:The percentage of homebuyers who anticipate further price increases in their neighborhood remained virtually unchanged from last quarter. Both quarters, 79% indicated a belief that prices will increase in the next 12 months. This quarter, 23% think prices will rise “a lot,” up just slightly from 22% last quarter.

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  • Rising prices are an increasingly common concern: Forty-eight percent of buyers listed rising prices as a major concern, up from 40% last quarter.Sixty-five percent cited low inventory as a major concern in the first quarter, down slightly from 66% last quarter.

    For more information on the Lake Tahoe area real estate market, contact Sierra Sotheby’s International Realty at 888.444.1505.