Expectations of Rising Home Prices Spur Some Buyers!

Reading an article by Esther Cho  from DS News.com, titled "Survey:  Rising Prices Motivate Buyers Now", and found some things I'd like to share with the general public who are interested in real estate news.

"The expectation for prices to continue rising is creating URGENCY among consumers to buy NOW, according to a Redfin survey of 1,084 active homebuyers.  The percentage of homebuyers who believe prices are bound to move higher in the next 12 months increased to 71% in the 4th quarter from 61% in the third quarter....The 4th quarter share is also more than double from 34% in the 1st quarter." 

Rising prices was cited as the main reason they were buying by 33% of respondents, ad in the 3rd quarter that number was 29% and 195 in the 1st quarter. 

But there is a low inventory of houses on the market at this time, which causes some people to hold off buying.  38% of respondents decided to wait,  while 46% of those searching for a home are expanding thir search into areas not previously considered. 

LOW interest rates are still being cited as the leading reason to buy this year with 57% of the people citing that as their reason; however in the 3rd quarter 64% cited that reason.  I can't understand that as we are lower now than back then, as a matter of fact an economist that spoke at our MLS meeting says its hasn't been this low since Thomas Jefferson (our 3rd president) was in office. 

More buyers plan to buy bigger, 49% say much bigger.  Others are buying same size but nicer and others are moving to a different location. 

Buyers who are also sellers doubled this quarter from 8% to 16%.  So would that mean that 84% don't already own a home or plan on keeping both houses?  Very interesting statistic that needs questions answered about that response. 

Hope these incites helped you make a decision whether to get off the fence and buy NOW.  If you are in the Amarillo area, call me and lets discuss your options, especially if you are a Veteran, as I am a Veteran's Land Board preferred realtor.  Prudential Ada Realtors, 355 9601.