Eight neighborhoods—in Phoenix, Charlotte, Fort Worth, and Raleigh—had iBuyer purchase rates of 10% or more through October of 2019. iBuyers purchased 13.7% of the homes sold so far in 2019 in the Phoenix neighborhood of Pecan Creek, making it the most active neighborhood in the country for iBuyers this year.
“The fact that iBuyers have reached over 10% market share in some places could be an indication of how big iBuying could get nationwide once the business model is perfected,” said Redfin chief economist Daryl Fairweather. “However, it’s possible that iBuyers are only doing so well in certain neighborhoods because the homes there are largely homogenous—modest, entry-level homes all built around the same time, typically with two or three bedrooms. These factors make it easier to use automated tools to value homes well and resell them quickly. As iBuyers begin to expand in more expensive markets beyond the small foothold they currently have, we’ll get a clearer picture of whether they are capable of reaching a high level of market share nationwide.”