The nation’s leading iBuyers only bought a total of 880 homes in the second quarter of 2020, a decrease of 88 percent from the 7,410 homes RedfinNow, Offerpad, Opendoor and Zillow purchased in the second quarter of 2019, according to a new study by Redfin released Thursday.
The second quarter of 2020 — April through June — includes the pandemic-fueled pause to homebuying all four iBuyers endured.
IBuyer purchases accounted for just 0.1 percent of homes sold across more than 400 metro areas in the second quarter, down from 0.6 percent the year prior. iBuyers overall spent $195 million buying homes, down from $1.6 billion the year prior.
Despite that massive drop, RedfinNow reported an uptick in interest in the third quarter.
“The pandemic has brought a lot of folks into the market who need liquidity, certainty and a safe and contactless way to sell their home,” Jason Aleem, vice president of RedfinNow, said in a statement. “RedfinNow is working with several move-up buyers who need a bigger house with room to work from home, as well as parents moving closer to their adult children.”
The iBuyer business hasn’t been insulated from the high demand that buyers across the country are facing. The “iBuyer bidding war,” has ramped up since all of the top iBuyers began purchasing homes again.
“Homeowners are seeking out offers from multiple iBuyers so they can feel confident they are getting the best possible price in this blazing hot market without a bunch of foot traffic coming through,” Aleem said. “As a result, iBuyers are making more competitive offers.”
iBuyers are also buying less expensive homes, according to the data compiled by Redfin, using local multiple listing services and public record data. The median home purchased by an iBuyer in the second quarter was $241,100, down from $250,000 the year prior.
On the selling front, homes listed by iBuyers flew off market in the second quarter at a rapid pace compared to the year prior. iBuyer-owned homes sat on market for a median of 13 days, compared to 40 days in the second quarter of 2019. The typical non-iBuyer home spent 37 days on market.