Despite the challenges prospective home buyers faced in the summer months, those who were unable to acquire a home are expected to do so this winter. According to Realtor.com’s Winter Home Buyer Report, those that missed out on homes earlier this year are expected to actively participate in the market over winter. The next few months are expected to see more buyer activity than in recent years. This is a particularly encouraging sign for the housing sector, as it compliments predictions made by Freddie Mac that suggest the recovery will continue into 2014.
The survey acknowledged approximately 1,300 people who intend to buy a home over winter. The push to buy a house may be attributed to lingering conditions from past home-buying seasons. Accordingly, distinct lacks of inventory and all-cash offers continue to set the pace for the upcoming months.
“This summer and spring home-buying season was particularly challenging for buyers, especially first-time home buyers trying to compete with all-cash offers and bidding wars because of reduced inventory,” said Alison Schwartz, vice president of corporate communications at realtor.com. “In fact, a quarter of the winter home buyers revealed they are in the market now because they were unable to find a home during this last home-buying season.”
The Winter Home Buyer Report revealed the purchase status of those looking to buy:
- 28% said they were relocation buyers
- 19% said they are existing homeowners looking to downsize
- 19% said they are first-time home buyers
- 15% said they are current homeowners looking to move up
Approximately 24 percent of the survey’s respondents acknowledge that they will be searching for a home this winter because they were unable to acquire one during the summer. However, other factors are expected to increase buyer activity as the year draws to an end. Twenty-six percent of those surveyed think that sellers will be more motivated and willing to negotiate. Others are counting on the competition to be significantly less, as the winter cycle is associated with downtime in the housing sector.
Despite a willingness to participate in the housing market, buyers are still expecting to face challenges this winter. Tight inventory levels continue to make it increasingly difficult to find an appropriate home. Some fear that a lack of available options will push houses out of their price range.
Cash purchases remain strong heading into the winter months. The following recognizes the amount of cash respective home buyers are planning to use for their down payment:
- 13% of buyers are planning to put down 3.5 %
- 23% of buyers are planning to put down 10 to 20%
- 22% of buyers are planning to put down 21 to 99%
- 19% of buyers are planning to put down 100%