Quite a number of buyers — especially millennials — are purchasing homes nationwide that they have never seen in person, such is the competitiveness of the real estate market.
According to a recent Redfin-commissioned survey of more than 1,900 homebuyers across 32 major markets, nearly two-thirds of people who bought a home last year made an offer on a property that they’ve never actually seen. The number is the highest share since at least 2015, and up from 32% a year earlier, and 45% in July 2021, which was previously the high point.
And speaking of numbers, 90% of millennials would buy a house sight unseen, a 10% increase from 2021, according to realestatewitch.com.
One in six of those millennials would be willing to offer $100,000 or more above the asking price for their dream home.
Buyers may have no choice but to respond quickly and pull out all the stops.
According to the National Association of REALTORS®, in today’s rapid-fire, act-fast marketplace, nearly 80% of properties sold in less than a month in December 2021 and properties stayed on the market for less than three weeks, the National Association of REALTORS® reports.
Millennial respondents would consider purchasing a home without touring it only under certain circumstances, such as a great price or the opportunity to be the first owner of a new-construction home.
Given the still-competitive nature of nearly every market everywhere, 46% of millennials are willing to “max out” their budgets to buy a home, said the report, with 33% planning to purchase a home that costs more than the median U.S. home price of about $405,000, which would be an unlikely find in Pasadena.
A strong percentage of millennials—82%— are also more likely than boomers to purchase a fixer-upper, but, according to the study, a quarter of those who do, regret it.
Millennials have their eyes on the goal already, though, according to realesstatewith.com, with many having more than $10,000 in savings — a 25% increase from last year.
One-third of those youngish buyers nationwide, however, plan to put down less than 20% on their homes—another problematic situation in Pasadena, with cash buyers still ruling the roost.