In a vote of confidence for an improving real estate market, seventy-one percent of homebuyers surveyed by Redfin said they are expecting house prices to increase during the coming year in their neighborhood. Additionally, the survey showed that over half (59 percent) of homebuyers are concerned about the lack of inventory of homes for sale. Here in St. Louis, as the table below shows, we have over 25 zip codes that have a 3 month, or less, supply of homes for sale which is making it more of a challenge for home buyers to find a home they like and supports rising home prices so, if you are one of those home buyers waiting for the “right time to buy”, I wouldn’t wait any longer if I were you.
Other highlights of the survey include:
- 33% listed rising home prices as a major concern, up from 23% last quarter;
- 22% of respondents said they were concerned about a weak economy, down from 27% in the third quarter;
- 57% cited low interest rates as a reason to buy now, down seven percentage points from last quarter and sixteen percentage points from the first quarter, but still the most common motivator for buying now;
- 59% indicated that low inventory was their top concern with buying a home, consistent with last quarter’s rate;
- 37% of respondents indicated they are first-time homebuyers, down from 48% last quarter; and
- 5% of respondents are concerned about the Fiscal Cliff and possible changes to the Mortgage Interest Deduction.
Source: MORE, REALTORS
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