The Redfin analysis used MLS and public records data to identify home purchases and sales made by the most well-known national iBuyers. The term "iBuyer" (short for instant buyer) is used to describe real estate companies that purchase houses from homeowners in quick, cash transactions. These companies then make any necessary improvements and resell the homes.
While iBuyer market data isn't yet available for July and August,
"The pandemic has brought a lot of folks into the market who need liquidity, certainty and a safe and contactless way to sell their home," Aleem said. "RedfinNow is working with several move-up buyers who need a bigger house with room to work from home, as well as parents moving closer to their adult children."
"One trend that has ramped up since the pandemic began is the iBuyer bidding war," Aleem continued. "Homeowners are seeking out offers from multiple iBuyers so they can feel confident they are getting the best possible price in this blazing hot market without a bunch of foot traffic coming through. As a result, iBuyers are making more competitive offers."
In the second quarter,
iBuyers Sold Homes Much Faster Than Last Year in the Second Quarter
In the second quarter, iBuyer-owned homes found a buyer after being listed on the market for a median of 13 days, down from 40 days a year earlier. A typical, non-iBuyer home spent 37 days on the market, unchanged from a year prior.
"Back in early spring when the market was reeling, RedfinNow was very aggressive with our listing prices and price drops, which helped us sell homes faster," Aleem said. "Redfin's Direct Access, which allows buyers to use our app to tour listings without an agent, also made it safe, fast and easy for buyers to tour our homes, all of which are vacant. The buyers' agents we worked with told us our homes were selling in part because their clients felt comfortable touring them on their own."
iBuyers Bought Less Expensive Homes Than Last Year in the Second Quarter
iBuyers bought homes for a median of
The full report complete with charts, metro-level data and methodology is available at: https://www.redfin.com/blog/ibuyer-real-estate-q2-2020.
Redfin (www.redfin.com) is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country's #1 real estate brokerage search site, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the
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Redfin Journalist Services: Alina Ptaszynski, 206-588-6863, email@example.com