Home buyers and sellers in the U.S. property market are not exactly in sync with each other or the market conditions, a new study conducted by the property website Redfin has found.
The study analyzed about 707 Redfin agents and their partner firms across 35 markets in the United States, found that while sellers are now planning to flip their homes for above-average asking prices in the area, buyers aren't ready to invest in homes yet.
Of the total surveyed agents, 24 percent said that the current market gave sellers all the power. The figure was down from 35 percent - recorded three months ago. Also, 40 percent of the agents said it's a good time to buy when opposed to the 46 percent positive response recorded at the same time, last year.
"Typically it takes sellers six to nine months to adjust to a price change, but this latest shift is longer. Prices have moved down and then up so much over the past five years that it's even more difficult for sellers to have a realistic baseline for what their homes are worth in the current market," said Nela Richardson, chief economist at Redfin.
The agents pointed out that financing difficulties and lack of affordability were holding back buyers from investing in homes.
About 16 percent believed that getting a mortgage was a problem and 18 percent thought that buyers could not afford a down payment. About 12 percent thought that buyers were hesitating because of bleak economic conditions and a high number of 43 percent believed that rising prices and dwindling affordability is hampering buying activity.
Also, buyers are walking away from aggressive offers.
"...new buyers in the market are much less willing to chase an escalating sale price to compete with multiple bids. The demand side of real estate is moving from 'please take my offer' to 'take it or leave it as you please.' Homebuyers' willingness to walk away from a deal that's a bad fit is good for them and is ultimately healthier for the housing market," Richardson added.
The surveyed agents also believed that the millennials - those born between the 1980s and 2000s - are more "tech savvy", "cautious" and "well informed."
Indeed, it is the first time buyers who are now a matter of concern. According to the latest National Association of Realtors report, millennials accounted for only 27 percent of the existing home sales in May.
These millennials and their older counterparts are also resorting to renting rather than buying. A recent report by the Joint Center for Housing Studies at the Harvard University states that "the affordability problem fundamentally reflects the simple fact that the cost of providing decent housing exceeds what low-income renters can afford to pay."
Meanwhile, the U.S. housing recovery is mapping a broad growth with prices rising evenly across board. Read more on the real estate market recovery here.
