Opendoor data reveals what consumers think about today’s real estate market
Reading Time — 6 minutes
July 21, 2021
By Kerry Melcher
Reading Time — 6 minutes
July 21, 2021
This past year, Nashville resident Danielle Whitmon learned that her tenants would be moving out of the townhouse she owned as an investment property. Danielle and her husband knew they wanted to sell it, but with full-time jobs and three kids, they didn’t have the time to manage cleaning, repairing, and showing the property. They had heard about Opendoor, and decided to request an all-cash offer.
The offer was right in line with their expectations, and they were able to pick their closing date to match their tenant’s move-out date. Danielle says, “Having the certainty of a cash offer and not having to deal with time consuming repairs took a huge weight off our shoulders. We were even able to use the profit from the sale of our townhouse for home repairs to our current home. Opendoor made the entire process incredibly easy, quick and stress-free.”
Our recent report, The Hearts & Minds Behind Today’s Housing Market, showcased how America’s hot housing market is impacting how different generations feel about real estate. Today, we’re offering a deeper look into regional trends around American’s feelings about home buying and selling with new data we collected from local residents who live in six of our markets: Atlanta, Charlotte, Dallas, Nashville, Phoenix, and Raleigh-Durham.
Whether you’re buying or selling a home in a competitive market this summer, Opendoor is here to help you navigate the process and remove pain points. Learn more about how we can help you sell your current home and buy your dream home here.
Residents in Atlanta are the most optimistic about today’s market, especially when it comes to buying a home. Buyers and sellers see buying a move-in-ready home as a better investment vs. U.S. buyers and sellers overall. They see staying put and fixing up their current home as less of a good investment.
“We’re seeing home buyers across Atlanta search for homes at a record rate. With a booming economy and vibrant local communities, people from in and out of Georgia are flocking to Atlanta,” said Regional General Manager, Jay Cherry. “Across all markets surveyed, prospective buyers in Atlanta were the most optimistic about the market opportunity, which doesn’t come as a surprise given the combination of affordability, Southern hospitality and outstanding lifestyle that Atlanta provides residents.”
Among those surveyed Charlotte homeowners were the most ambitious– homeowners in the Queen City are most willing to undertake renovations by purchasing a fixer upper. In Charlotte, buyers and sellers are more cautious when it comes to expecting housing inventory to pick up, compared to U.S. buyers and sellers overall (just 36% vs. 53% for U.S. expect inventory to increase).
“As the finance capital of the South, it’s no surprise that Charlotte is seeing an influx of workers from more expensive cities as it further evolves its tech and startup scene. These transplants are looking for more space and a better quality of life. With great weather, close proximity to both the mountains and coast, it’s unlikely Charlotte’s home supply will outpace demand in the near future,” notes Regional General Manager Jon Enberg.
Dallas appears to be a microcosm of the U.S., with attitudes about the housing market mirroring those seen for the country overall.
“The current housing market is part of day-to-day conversation. Whether you’re walking the streets of downtown, uptown or Lower Greenville, the real estate buzz in Dallas-Fort Worth is incredible. Homeowners are curious if they can capitalize on the recent but hefty appreciation of the market and our data validates that,” notes Dallas-Fort Worth General Manager, Sharon Brown. “Homebuyers on the other hand are hoping to find their dream home, while also making a sound investment. For home buyers or sellers at any stage of the process, Opendoor can help our customers make the decision that’s right for them on their own timeline.”
The market is especially hot in Music City, with little relief in sight for buyers. Compared to the U.S. as a whole, Nashville residents are twice as likely to expect the market to get worse for buyers (68% vs. 26% U.S.). Despite the gloomy buyer outlook, buyers in Music City don’t plan to shop for flooring any time soon; Nashville buyers see a move-in ready home as the best investment.
“The Nashville housing market continues to march on at an unprecedented level. With historically low inventory and ongoing strong buyer demand, home buyers face a daunting task in finding their next home. We see this reality reflected by buyers in our recent survey; we found only one in four Nashville buyers believe now is a good time to buy a home, even though three-quarters believe that buying a home, in general, is a good investment,” shares Regional General Manager, Jay Cherry.
Not much is hotter than the Phoenix summer sun, unless you’re looking at the Valley’s real estate market. Over two times as many people there compared to the U.S. overall say they expect the market to get worse for buyers (55% vs. 26% U.S.). However, it’s a strong seller’s market, and Phoenix’s optimism is reflected in the numbers.
Phoenix General Manager Michelle Meyers notes, “Like markets across the country, Phoenix has seen one of the hottest markets in history, and our data shows residents believe it’s a great time to sell. While we’re finding that buyers aren’t as optimistic, it’s important to stay positive. Available market inventory is still less than years prior but we’re seeing a clear upward trend as of late. Buyers should get pre-approved before starting their search. For buyers who want their offers to stand out, we offer Opendoor-backed offers, which gives buyers the edge and benefits that can come with cash offers.”
While Raleigh homebuyers are the most inclined of all markets surveyed to invest in their current home by making updates, they also see buying a house as a good investment. Nearly two times as many people there compared to the U.S. overall say they expect the market to get worse for buyers (49% vs. 26% U.S.).
“With Google, Apple and other tech firms’ recent announcements about adding Raleigh-Durham offices, buyer demand will only increase. Market supply is at an all-time low and new construction as well as resale supply is not keeping pace. New jobs are significantly above the median salary for Raleigh-Durham, and buyers are moving from more expensive markets and making cash offers,” adds Jon Enberg, Regional General Manager. “All of these factors are making it tough for buyers to find another home, which is leading to many using their excess cash to invest in improving their current home. This can lead to stronger returns on investment when they are ready to sell given the continued demand for housing.”
Kerry Melcher is Head of Real Estate for Opendoor.
Methodology: Opendoor collected data from 856 consumers across the U.S. who are planning to buy or sell a home in the next 12 months. The data includes augmented samples from residents in Atlanta, Charlotte, Dallas, Nashville, Phoenix and Raleigh-Durham, allowing us to provide a breakdown of responses from these markets. The data was collected via Qualtrics in 2021 from May 14-24.