Economic Concerns Melt Away For Home-Buyers, Rising Prices Seen As More Certain - Redfin Real Estate News

Economic Concerns Melt Away For Home-Buyers, Rising Prices Seen As More Certain

Updated on October 19th, 2020

For the latest Redfin Real-Time Home-Buyer Tracker, we surveyed more than 1,000 active home-buyers who have recently toured homes with Redfin, in order to get their pulse on the market. The strongest messages they shared with us were a continued frustration with low inventory and a growing certainty that home prices in their areas are now on the rise.

Home-buyers surveyed by Redfin are:

  • More confident in rising prices: Seventy-one percent of buyers who responded to our survey now believe that home prices will increase in their neighborhood in the next twelve months, up from 61% last quarter and more than double the 34% who expected rising prices in our first quarter survey.
  • Now more concerned by rising prices than the economy: Thirty-three percent of buyers listed rising prices as a major concern in the fourth quarter, up from just 23% in the third quarter. Meanwhile, 22% said they were concerned with a weak economy, down from 27% in the third quarter.
  • Less driven by low rates: While low interest rates was still the top response (57%) when we asked buyers why they plan to buy now, the response was down seven percentage points from last quarter and sixteen percentage points from the first quarter.
  • Still flummoxed by low inventory: Fifty-nine percent of buyers listed low inventory as their top concern with buying now, consistent with last quarter’s rate.

For the full report including data tables and charts, visit the Real-Time Market Sentiment in Redfin’s Research Center.


Tim Ellis

Tim Ellis has been analyzing the real estate market since 2005, and worked at Redfin as a housing market analyst from 2010 through 2013 and again starting in 2018. In his free time, he runs the independently-operated Seattle-area real estate website Seattle Bubble, and produces the "Dispatches from the Multiverse" improvised comedy sci-fi podcast.

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