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Agents Expectations Of Strong Home Price Increases Drops Dramatically

Home Price Increases The number of real estate agents that have expectations of strong home price increases dropped by over 60 percent (63%) in the 2nd quarter of this year, according to the results of a Redfin survey that were just released.  Agents are not gloom and doom about home prices though as 70 percent of them feel home prices will “rise a little”.

Highlights from the survey:

  • Recognize that it is still a strong seller’s market: 86% of agents surveyed described now as “a good time to sell,” up from 82% in the first quarter. Meanwhile, only 46% described it as “a good time to buy,” down from 57% in the first quarter.
  • Expect more modest price gains: 86% of agents believe home prices will rise in the coming months, versus 97% in the first quarter. Sixteen percent expect home prices to “rise a lot,” down from 44% in the first quarter.
  • Notice Less Competition: Just 11% of Redfin agents recommend that buyers use aggressive strategies such as waiving contingencies and expanding their budget when facing a bidding war, down from 15% in the first quarter, signaling a shift away from the fierce competition seen earlier in the year.
  • Still struggle with low inventory and multiple offers: 93% of agents pointed to low inventory and multiple offers as the most common challenges facing buyers, down slightly from 96% in the first quarter.
  • Are seeing an increasing number of new agents: 31% of agents have seen an increasing number of people in their area becoming real estate agents, up from 24% in the first quarter and 17% in the third quarter of 2012.

Home Price Increases

Is Now a Good Time to Buy a home?

Is Now a Good Time to Sell a Home?