Despite continually rising home prices, prospective homebuyers are still considering fronting the dough, according to a real-estate agent survey.
About 41% of a survey of roughly 1,350 prospective homebuyers indicated that they were willing to pay more for home because they see less inventory on the market.
The figure was up from just 34% during the first quarter of 2013 and up from 26% in the fourth quarter of 2012, according to the Redfin Real-Time Homebuyers survey released 23 May.
In major markets like Phoenix, Miami, and Atlanta, investors have bought up a considerable amount of homes, thus driving prices upwards and inventory down. According Lima One Capital, a hard-money lender in Atlanta, Georgia, investors made up almost one-third of all housing purchases in 2012.
Until investor-purchased homes and current homeowners’ properties come back onto the market, prices are expected to continue to rise, and prospective homebuyers are aware of it.
According to the survey, 79%, an overwhelming majority of homebuyers, indicated they expect home prices to rise over the next 12 months, with about a quarter of all respondents believing prices would rise “a lot”.
Home prices remain a major concern for roughly half of the respondents, up from 40% just one quarter ago.