According to a recent survey of home buyers, buyers are undeterred by the recovering market and seem to be willing to pay more for what they want. Respondents cite low inventory and rising prices as key concerns when shopping for a home, but while the percentage of people worried about inventory has remained steady throughout 2013, concern about rising home prices has more than doubled year over year. Despite this, homebuyers are accepting the reality of a seller's market and expressing a willingness to pay more. Notably, unease about the overall economy continues to recede.
• Moving toward consensus that this is a seller's market: Sixty-seven percent see now as a good time to sell, up from 48 percent last quarter.
• Home buyers 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 percent indicated a belief that prices will increase in the next 12 months. This quarter, 23 percent think prices will rise "a lot," up just slightly from 22 percent last quarter.
• Rising prices are an increasingly common concern: Forty-eight percent of buyers listed rising prices as a major concern, up from 40 percent last quarter. Sixty-five percent cited low inventory as a major concern in the first quarter, down slightly from 66 percent last quarter.
• 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 percent in the first quarter and just 26 percent in the fourth quarter.
Published with permission from RISMedia.