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Over 70 Percent of Homebuyers Expect Prices to Increase in Next Year

dennis-norman-realtorAccording to the results just released of a survey by Redfin, 71 percent of homebuyers think home prices in their neighborhood will increase over the next year and a third are concerned about asking prices on homes going up.  This is good news for investors and indicates that in many markets, better times are coming as demand heats up.

Other highlights of the survey include:

  • 22% of respondents said they were concerned about a weak economy, down from 27% in the third quarter;
  • 57% cited low interest rates as a reason to buy now, down seven percentage points from last quarter and sixteen percentage points from the first quarter, but still the most common motivator for buying now;
  • 59% indicated that low inventory was their top concern with buying a home, consistent with last quarter’s rate;
  • 37% of respondents indicated they are first-time homebuyers, down from 48% last quarter; and
  • 5% of respondents are concerned about the Fiscal Cliff and possible changes to the Mortgage Interest Deduction.