SEATTLE, July 30, 2020 /PRNewswire/ -- (NASDAQ: RDFN) -- Almost half (45%) of people who bought a home in the past year made an offer on a property that they hadn't seen in person, the highest share since at least 2015, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That's up from just 28% during the same period last year, and 20% in July 2015, when Redfin posed this question for the first time. Redfin agents cite health concerns around the pandemic, accelerating migration trends, and competition fueled by a worsening housing shortage as reasons more buyers are bidding on homes before visiting them.
Sight-unseen offers will likely continue to climb in the coming months, according to Redfin chief economist Daryl Fairweather. "I predict that by the end of the 2020 homebuying season, the majority of homebuyers will have made a sight-unseen offer," said Fairweather. "The pandemic has changed the way many people view homes, and on top of that, the market is highly competitive. If you aren't using this strategy, another buyer who is could beat you to the punch."
Many Americans who were already considering relocating before the coronavirus pandemic are now taking the plunge, as mortgage rates continue to fall and employers implement flexible remote-work policies. A record 27% of house hunters looked to move to different metro area in the second quarter of 2020, up from 25% in the second quarter of 2019.
Additionally, about a quarter of people who plan to buy a home in the next year are limiting the number of properties they're touring in person due to the coronavirus, while 18% aren't touring in person at all, according to another recent Redfin survey. Buying a home remotely has become easier as touring technology has improved. Views of virtual 3D walkthroughs on Redfin.com have surged 243% since late February, and video tours led by Redfin agents now account for 1 in 10 of all Redfin home showings, up from less than 1% at the beginning of March.
"A big part of doing video tours is establishing trust between me and my clients," said Cleveland Redfin agent Danielle Parent. "Because the buyers aren't physically present, I have to be their eyes, ears, and nose, for that matter. When I'm walking through a home on a video tour, I'm pointing out cracks in the walls, places where moisture can get in, and other important things they need to know. I earn that trust."
Intensifying competition is also contributing to the uptick in sight-unseen offers. More than half of Redfin offers faced bidding wars in June as the number of homes for sale continued to shrink and mortgage rates dropped to a record low, making it all the more advantageous for house hunters to get their offers in ASAP—sometimes before seeing the home in person.
About Redfin Redfin (www.redfin.com) is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country's #1 real estate brokerage search site, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in the United States and Canada. Since our launch in 2006, we have saved our customers over $800 million and we've helped them buy or sell more than 235,000 homes worth more than $115 billion.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email [email protected]. To view Redfin's press center, click here.