It's no secret that iBuyers are now having a big impact on the current housing market conditions. This change has been noticeably different over the last 2-3 months. But a couple weeks ago, I decided to look up the numbers of how many active listings were currently held by iBuyers (specifically Zillow, Open Door and Offerpad). And to my surprise, those three companies held around 12% of the active listing count in Maricopa and Pinal County. At that point, I posted a video to my audience on News Break and YouTube to discuss the potential impact. And after that, I was contact by both the New Times and AZ Family to answer a few questions. See the links below with the interview links:
Both David (AZ Family) and Katya (New Times) did a great job with their articles. But I did want to add a little more commentary to them.
1. The 13% is based on the total of "active" listings that are currently on the MLS for both Maricopa and Pinal County. So it does not include homes that are current pending or under contract. If you include all homes currently listed (both active and pending/ucb), then the iBuyer ownership percentage drops to around 8%. Not sure if that really matters overall but I see a lot of people confuse the numbers on this one or forget to add the full context.
2. I am not necessarily telling everyone not to buy right now, just be cautious and do not chase anything if the numbers don't feel right. I would especially tell any buyers to be cautious of the current iBuyer owned homes because they tend to be way too overpriced (even compared to the rest of the homes on market). But there are always exceptions so make sure you look at everything as case by case.
I don't know what the future holds with all of this but it is definitely frustrating to see normal homebuyers have to compete with these guys. Investors have always had their impact on the market and have been positive in a lot of ways but this is different. The amount of capital and power behind these 2-3 major investment groups will have a significant and possibly negative impact overall. Only time will tell.
If you are a buyer or a seller in this market and want to know how this might affect you, feel free to reach out or contact us on our website livinginphoenixaz.com