IRVINE, Calif., April 19, 2019 /PRNewswire/ -- ATTOM Data
Solutions, curator of the nation's premier property
database and first property data provider of Data-as-a-Service
(DaaS), today released an infographic featuring the U.S.
housing markets where iBuyers are knowingly present along with home
prices data in those markets to illustrate how each market is
fluctuating.
According to ATTOM Data Solutions Chief Technology Officer
Todd Teta, iBuyers have been
expanding at breakneck speeds. What started as a moonshot idea six
years ago has now blossomed into a massive, billion-dollar
homebuying market in its own right — and it's not showing any signs
of slowing.
Opendoor brought the idea to life in 2013, quickly followed by
competitor Offerpad. Since then, countless others have hit the
scene — including Redfin (via RedfinNow) and Zillow (via Instant
Offers) and even brokerage- and market-specific ones like Door and
Offerdepot.
But it's not just more players that are getting in on the game.
There's also a footprint expansion happening, too. And though most
of the major iBuyers got their start in the Phoenix area, this new-age home selling option
has reached far beyond the borders of Arizona's biggest city.
By the looks of it, that reach is going even further as we head
into 2019.
Click here to view the iBuyer Footprint Infographic
Where iBuyers Operate
Regionally, the South has the
most iBuyer action, with Phoenix
essentially the epicenter of it all. Three players launched there
(Opendoor, Offerpad and Offerdepot). Zillow's Instant Offers also
now operates in the city.
Texas also has a big iBuyer
presence. Dallas-Fort Worth,
Austin, Houston and San
Antonio all have at least one iBuyer in the market, and a
few players have plans to expand further into the Lone Star State
later this year.
North Carolina (specifically
Raleigh and Charlotte), as well as Florida, California and Georgia also have decent iBuying activity as
well. Atlanta is one of the few
cities to have most of the big players in the market. Opendoor,
Offerpad and Zillow are all on the ground in ATL.
For the most part, iBuyers are shying away from markets in the
North and Northeast parts of the country. Housing affordability
(and availability) likely plays a role in this, as does overall
consistency of existing housing stock. iBuyers rely heavily on data
and algorithms when evaluating potential properties. Areas with
inconsistent and highly unique housing makes this approach less
reliable (and less profitable.)
Where iBuyers are Headed
For the most part, iBuying is
going to be much of the same this year: more Southern and suburban
markets with largely affordable housing inventory. Offerpad just
expanded into Houston at the start
of the year, and the company has its sights set on another Lone
Star State city next: San Antonio.
(Opendoor is already operating in both cities).
Opendoor has reportedly started buying homes in Los Angeles, though it has yet to make an
official announcement of expanding into the area just yet. The
company is also apparently considering a move into Washington, D.C. — which would mark iBuying's
first real dip into the Northeastern waters.
Other iBuyers haven't made official announcements as to where
they're headed this year, but with the number of investments being
made into this movement (not to mention the institutional interest
in it), we can likely expect some serious growth on the
horizon.
Where will this money take them, though? Only time will
tell.
The iBuyer Market Reach
In many of the markets where
iBuyers are present, we are seeing home prices reach their peaks in
2018. For instance, the Atlanta
market, where Opendoor, Offerpad and Zillow are currently present,
home prices have increased 62 percent in 5 years and reached their
peak in 2018.
Other markets to reach their peak in 2018, where iBuyers are
present include: Charlotte,
Dallas-Fort Worth, Denver and Houston.
Those markets, where the iBuyer footprint is casting a wider net
with the presence of Opendoor, Offerpad and Zillow include;
Las Vegas, Orlando, and Phoenix, all of which have seen double digit
increases in home prices.
About ATTOM Data Solutions
ATTOM Data
Solutions provides premium property data to power products
that improve transparency, innovation, efficiency and disruption in
a data-driven economy. ATTOM multi-sources property tax, deed,
mortgage, foreclosure, environmental risk, natural hazard, and
neighborhood data for more than 155 million U.S. residential and
commercial properties covering 99 percent of the nation's
population. A rigorous data management process involving more than
20 steps validates, standardizes and enhances the data collected by
ATTOM, assigning each property record with a persistent, unique ID
— the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in
many industries including mortgage, real estate, insurance,
marketing, government and more through flexible data delivery
solutions that include bulk file licenses, APIs, market
trends, marketing lists, match & append and introducing
the first property data deliver solution, a cloud-based data
platform that streamlines data management – Data-as-a-Service
(DaaS).
Media Contact:
Christine
Stricker
949.748.8428
christine.stricker@attomdata.com
Data and Report Licensing:
949.502.8313
datareports@attomdata.com
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SOURCE ATTOM Data Solutions