Survey: Rising Prices Motivate Buyers To Purchase Now

December 19, 2012

in News

Survey: Rising Prices Motivate Buyers To Purchase Now

The expectation for prices to continue rising is creating urgency among consumers to buy now, according to a Redfin survey of 1,084 active homebuyers. The percentage of homebuyers who believe prices are bound to move higher in the next 12 months increased to 71 percent in the fourth quarter from 61 percent in third quarter, according to the survey. The fourth quarter share is also more than double from 34 percent in the first quarter. More respondents cited rising prices as an incentive to purchase a home now, with 33 percent falling into this category compared to 29 percent in the third quarter and 19 percent in the first quarter. Buyers still cited low interest rates as the leading reason to buy this year, but the share decreased to 57 percent in the fourth quarter from 64 percent in the third quarter. According to the survey, Americans appear to be less discouraged by the state of the economy. 
Just 22 percent of respondents say a weak economy is a major concern for buying now, a decrease from 27 percent in the third quarter. [Read this article]

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