More Homebuyer Landlords Just Means Fewer Houses on the Market
NEW YORK (TheStreet) -- There are people ready to buy homes, but that doesn't mean they want to move into them.
Redfin, the real estate online brokerage firm, reports that 39% of homebuyers plan on buying but turning right around and renting the residence out rather than live in it themselves.
While that does give renters more residential opportunities, it also leads to Redfin's report that homes-for-sale inventory rates are at a "record low."
"Many of my home-buying clients refinanced and locked in a very low mortgage rate over the past few years," says Taylor Connolly, a Baltimore-based Redfin agent. "That low rate, combined with a strong rental market, means they can charge more in rent than they pay in mortgage each month, so they are going for it."
- 25% of homebuyers believe it is "a good time to buy," compared with 40% in February 2013.
- Primary concerns among buyers include a low selection of homes (61%), higher home prices (57%) and more completion from other buyers (53%). Only 40% of last year's buyers were worried about higher home prices.
- Only 10% of homebuyers have taken a home tour so far this year, citing "tight inventory."
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