The nation’s top iBuyers bought 880 homes in the second quarter, or 0.1percent of homes that sold across more than 400 U.S. metros, according to an analysis from Redfin.
Redfin said those numbers are down 88 percent from 7,410 homes, or 0.6 percent market share, from one year ago, and represents the smallest number of properties purchased by iBuyers since the first quarter of 2017.
RedfinNow, Opendoor, Zillow and Offerpad all suspended purchases at the beginning of the coronavirus pandemic and began to slowly reopen in May and June.
“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,” RedfinNow Vice President Jason 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 said. “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.”
According to the analysis, Phoenix had the most significant decline in iBuyer market share (-3.3 percent); followed by Raleigh, N.C. (-2.9 percent); and Las Vegas (-2.7). Phoenix’s 0.8 percent market share was the highest among the top iBuyer markets.
Redfin said iBuyer-owned homes found a buyer after being listed on the market for a median of 13 days during the second quarter, down from 40 days a year earlier.
“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.”
Redfin said iBuyers bought homes for a median of $241,100 in the second quarter, down from $250,000 a year earlier. In all but one iBuyer market (Riverside, Calif.), iBuyers purchased homes for less than the metro-area median.