Despite Inventory Shortages, Homebuyers Looking for Bargains This Winter

A Realtor.com survey of more than 1,300 site visitors from Nov. 7-16 reveals that 45 percent of buyers believe supply is scarce in their price range, but 26 percent still consider winter a good time to buy because sellers are more motivated to sell and willing to negotiate. First-time buyers, in particular, had a tough time making purchases in the spring and summer due to reduced inventory and competition from all-cash offers, says Realtor.com’s Alison Schwartz, vice president of corporate communications. “In fact, a quarter of the winter homebuyers revealed they are in the market now because they were unable to find a home during this last homebuying season,” she remarks. However, the survey reveals that 19 percent of prospective buyers plan to pay for their home in cash; and of those needing a mortgage in order to buy, just 22 percent expect to put down more than 20 percent. The inventory shortage likely will last through the 2014 spring buying season, says National Association of Realtors chief economist Lawrence Yun. The industry group expects resales to total 5.13 million for 2013, up 10 percent from 2012, and hold steady at about 5.12 million next year. | Read More