Redfin (www.redfin.com), the technology-powered real estate brokerage, today reports that 39 percent of homebuyers plan to buy their next home and then rent out their existing home instead of selling it.
This trend is further limiting the number of homes available for homebuyers, who faced record low inventory rates in January. Redfin’s latest Real-Time Homebuyer Survey also found that 27 percent of homebuyers plan to buy their new home first and then sell their existing home. Only 34 percent of survey respondents said they plan to take the traditional path of selling first and then buying a new home.
“Many of my home-buying clients refinanced and locked in a very low mortgage rate over the past few years,” said Taylor Connolly, a Redfin real estate agent in Baltimore. “That low rate, combined with a strong rental market, means they can charge more in rent than they pay in mortgage each month, so they are going for it. My family is in the same boat; when we move up this year, we plan to keep and rent out our current home.”
Other Survey Findings:
- Just 25% of homebuyers said now is a good time to buy, compared with 40% this time last year.
- Homebuyers cited low inventory (61%), rising prices (57%) and competition (53%) as their biggest concerns with the market this year. Notably, the percentage of respondents who cited rising prices increased to 57% from 40% last year.
- 90% of homebuyers said that tight inventory had limited them from taking home tours.
- 37% of homebuyers said that they would reconsider buying a home right now if mortgage rates reached 5%.
The Redfin Real-Time Homebuyer Survey is a companion to the quarterly Seller Survey and Agent Survey. Click here to view the full report, including charts and graphs.
About the Redfin Real-Time Homebuyer Survey
Redfin analysts surveyed 1,909 active homebuyers between Feb. 20 and 24, 2014. Respondents came from 22 metropolitan markets in the U.S.: Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Dallas, Denver, Houston, Los Angeles, Orange County, Miami, Long Island, Philadelphia, Phoenix, Portland, Raleigh, Sacramento, San Diego, San Francisco, Seattle, Washington, D.C.
Connect with Redfin
Redfin (www.redfin.com) is a technology-powered real estate broker that represents people buying and selling homes. Founded and run by technologists, Redfin has a team of experienced, full-service real estate agents who are advocates, not salespeople, earning customer-satisfaction bonuses, not commissions. Redfin.com features all the broker-listed homes for sale, as well as for-sale-by-owner properties that don't pay brokers a commission. Redfin also offers online tools that make the entire process of buying or selling a home easier and more fun. The company serves 23 U.S. markets and has closed more than $13 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World's Most Valuable Private Tech Companies by Business Insider.
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Amy Musser, 206-588-6863