Homebuyers who remained unfazed by low inventory, rising prices, and higher mortgage rates were more likely to score a home according to the results of a survey by Realtor.com [1]. The survey found that 34 percent of those who purchased a home were not discouraged by rising rates or home prices and 51 percent didn't pay above the asking price. It found that 42 percent of those surveyed had made only one or two offers before closing on their home.
The survey [2] was conducted for Realtor.com by Harris Research in July and includes online responses from more than 1,000 people who closed a home in 2018. It indicated that successful homebuyers were in the market for six months or less, made four or fewer offers, and bought a three-bedroom, two-bath home. Older buyers, mostly those above the age of 55 had the easiest time buying a home.
“Successful homebuyers in 2018 have been exceptionally well-qualified,” said Danielle Hale, chief economist for realtor.com “We are seeing the impact of the inventory crisis in the data, and it’s holding back home sales. While would-be buyers struggle with limited inventory, rising prices, and mortgage rates, those who closed were undeterred by today’s buyer frenzy. This is likely attributed to their experience, cash, and perhaps the market they’ve chosen to buy in.”
Speaking of prices, the survey found that despite a highly competitive market, 51 percent of the successful homebuyers didn't have to pay more than asking price. Twenty-eight percent of buyers paid less than asking price and 23 percent paid full asking. When compared to a similar survey by Realtor.com during the spring buying season, buyers during the current buying season were much more likely to offer above asking price than their peers during the spring buying season.
The survey also found that a large share of homebuyers who purchased a home in 2018 closed very quickly, with 25 percent of respondents starting their search and closing it within two months. More than 60 percent of buyers closed on their homes within six months of starting the search. Here too, older buyers were more likely to close quickly with 34 percent of buyers who were 55 years old and older closing on their transaction within two months, compared to 23 percent of 35-54 year-olds and 21 percent of 25-34-year-olds.