Redfin reports that iBuyers [1]have purchased more than one out of every 10 homes sold in 2019 in numerous markets.
Eight metros—Phoenix, Arizona; Charlotte, North Carolina; Fort Worth, Texas; and Raleigh, North Carolina—reported iBuyer purchase rates of 10% or more through October 2019. iBuyers bought 13.7% of homes in Phoenix’s Pecan Creek neighborhood so far in 2019.
“The fact that iBuyers have reached over 10% market share in some places could be an indication of how big iBuying could get nationwide once the business model is perfected,” said Redfin Chief Economist Daryl Fairweather. “However, it’s possible that iBuyers are only doing so well in certain neighborhoods because the homes there are largely homogenous—modest, entry-level homes all built around the same time, typically with two or three bedrooms.
“These factors make it easier to use automated tools to value homes well and resell them quickly. As iBuyers begin to expand in more expensive markets beyond the small foothold they currently have, we’ll get a clearer picture of whether they are capable of reaching a high level of market share nationwide.”
The Waddell neighborhood of Glendale, Arizona, saw iBuyers purchase 11.7% of the homes so far in 2019, which is a year-over-year decline from last years’ 16.9%.
Raleigh had the highest overall share of iBuyers in 2019 at 14.8%—a year-over-year increase from 2018’s 6.1%.
“iBuyers in Raleigh have been primarily focused on suburban homes priced between $200,000 and $300,000,” said Raleigh Redfin agent Mark Stephens. “The iBuyers definitely have a ‘type’—most of the homes they’re buying are standard two-story homes that were built in the ’90s and early ’00s. Their uniform nature makes these homes easy to turn around quickly with minor exterior work plus some carpet and paint inside.”
Converse, Texas—located near San Antonio—had the lowest average home price of homes sold by iBuyers in Q3 2019 at $169,000. Homes were purchased in the city at an average price of $235,000.
Mabelton, Georgia, had the highest average price for homes sold by iBuyers in 2019 at $300,000.