iBuyers purchased 3.1 percent of the homes sold during the third quarter of 2019 across 18 markets, according to an analysis by Redfin.
That’s nearly doubled compared with 1.6 percent during the third quarter of 2018. Redfin identified the markets with the largest share of iBuyers as Raleigh, N.C. (6.8 percent); Phoenix (5.1 percent); Atlanta (4.4 percent); and Charlotte, N.C. (4.3 percent)
“iBuyers are concentrating their efforts in southern markets where both home sales and prices are poised for strong growth,” Redfin Chief Economist Daryl Fairweather said in a release. “We think that iBuyers are likely to accelerate home sales in these markets. Homeowners who may have been reluctant to sell because they didn’t want to deal with the hassle may be persuaded by the convenience of an iBuyer sale.”
According to the analysis, homes purchased by iBuyers increased the most in Houston, where iBuyers bought 3.8 percent of the homes in the third quarter of 2019, up from just 0.1 percent a year prior. Jacksonville, Fla., saw the second-largest increase, up to 3 percent from 0. The third-largest jump was in Raleigh, where iBuyer market share rose to 6.8 percent up from 3.8 percent.
Redfin found the median price of homes sold by iBuyers in the third quarter fell in 17 of 18 markets compared with a year earlier, despite the overall price of homes increasing in every market. Phoenix was the only market where the median iBuyer sale price was unchanged.
Homes sold by iBuyers in the third quarter stayed on the market for a median of 28 days, down from 74 days a year prior. Redfin said the three metro areas with the largest difference in days on market were Raleigh (33 days faster), Charlotte (33 days) and Nashville, Tenn. (30 days).