By Gino Blefari
For many homebuyers, rising prices and low inventory continue to push the market seemingly out of reach. In the CoreLogic Case-Shiller September report, Seattle, Portland, and San Francisco experienced the steepest price hikes with 13.5%, 7.6%, and 7.4% increases respectively since last year. Also, the National Association of REALTORS® says existing home sales were down 1.7% last month.
Yet despite these market challenges, our research shows that prospective buyers, particularly Millennials, remain positive about the market and are determined to find the home they want. This may be, in part, to the resourcefulness of buyers who have found increasingly novel ways to make their bid stand out.
Our national Berkshire Hathaway HomeServices Homeowner Sentiment Survey released in September found that:
- 45% of prospective homeowners say they are willing to cover closing costs;
- 36% of Millennials are willing to send a personal letter to sellers to increase their chances of a winning offer; and
- 58% of Millennials said they would put down more of an earnest deposit to show their commitment to sellers.
Potential buyers simply are not allowing high prices and low supply to make them wait. They are doing everything they can to get a piece of the American Dream. ”Despite the challenges in the market, buyers have remained resilient,” says Victor Quiroz, managing partner at Berkshire Hathaway HomeServices California Properties in downtown Los Angeles. “With big appetites to purchase homes, I have seen buyers employ various tactics here in LA, some even going as far as submitting offers that waive their contractual protections.”
We anticipate that as inventory remains low, buyers will work with agents to find more creative solutions to securing homes. This will likely continue to be reflected in buyer sentiment which remains high with a favorable view of the real estate market.
For information on this year’s real estate trends, check out my last blog post here.