Photo: David Sawyer/Flickr
Increased homebuyer competition due to tightened inventory and rising national home prices could be prompting more sellers to list their homes “as is” or as “fixer-uppers” than just 5 years ago. And the largest influx of these “fixer-upper” listings is coming from the “high-end” market, according to a new study by the listing site Zillow.
Zillow determined that nationally there are 12 percent more “fixer-uppers” on the market today than in 2011. In the high-end market, there was a nearly 35 percent increase. However, on the lower-end of the market, there were just 2.6 percent more “fixer-uppers” today than 5 years earlier.
In order to gauge the change in the amount of “fixer-uppers” on the market from 2011 through 2015, Zillow searched its listings for the keywords “fixer-upper,” “needs work,” “good bones,” and “TLC” in 452 US metros, or about 80 percent of the US population.
There was an almost 96 percent increase in “fixer-uppers” in the DC-metro area, and a staggering 226 percent increase in high-end listings. Meanwhile, low-end listings recorded a 72.5 percent increase over the 5 year period studied.
In the New York-New Jersey metro area, there were 52.4 percent more “fixer-uppers” on the market today than 2011. The number rose to 58.5 percent in the high-end market and 62.4 percent in the low-end market.
Several booming tech-centric metros, like San Francisco, CA and San Jose, CA, recorded lower levels of “fixer-uppers” today than 5 years ago. There was a 15.7 percent overall decrease in San Francisco, and nearly 26 percent decrease in San Jose.
And while San Francisco also recorded a 12.1 percent decrease in the high-end market, San Jose’s high-end “fixer-upper” listings increased nearly 16 percent over the 5 year period.
Zillow also found that the median age of the typical home sold has also nearly doubled in just nine years. Homes were an average of 15 years old in 2006, but by the end of 2015 the median age jumped to 28 years.
“Sellers are in the driver’s seat, with the freedom to list their home for sale ‘as-is’ without worrying about price cuts or the home sitting on the market,” said Zillow’s chief economist Svenja Gudell.
“And without sufficient new construction, homebuyers are finding more and more homes on the market in need of a little TLC,” Gudell added.
To view the entire Zillow report, please click here.