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Zillow Research

Zillow Q3 2021 iBuyer Report

In Q3, homeowners sold 27,244 homes worth a total of $10.6 billion using an iBuying service. iBuyer market share reached 1.9% in Q3, a new record. 

  • In Q3, homeowners sold 27,244 homes worth a total of $10.6 billion using an iBuying service. iBuyer market share reached 1.9% in Q3, surpassing the previous high of 1% set in Q2 2021. 
  • The median markup for homes bought and sold by iBuyers in Q3 fell to 1.8% from 6.7% the previous quarter. In several metros, the typical home bought by an iBuyer in Q3 sold at a loss.
  • Homeowners in Phoenix, Atlanta, Dallas–Fort Worth, Houston and Charlotte sold the most homes using an iBuying service in Q3.

Fresh off a record-setting Q2 2021, the number of homes bought and then sold by iBuyers set new highs last quarter, a Zillow® analysis shows. As home prices rose across the country, the homes iBuyers purchased were more expensive than ever, and the markup when those homes were sold fell significantly from previous quarters’ markups.

Instant buyers, commonly known as iBuyers, are home-buying and -selling services that typically buy off-market homes directly from sellers at market rate and, after making light repairs and updates, quickly list them for sale on the open market. In the 36 largest iBuyer markets, homeowners sold 27,244 homes in Q3 using one of the four largest iBuying services: Opendoor, Zillow Offers, Offerpad and RedfinNow. That represents 1.9% of all U.S. home sales last quarter, and exceeds the previous record of 14,961 homes set in Q2 of this year. Those iBuyers sold 10,728 homes during the same period, also a record high. 

Amid record home value appreciation, iBuyers paid more for homes in Q3 than in any previous quarter. The median price of home sales using an iBuying service was $376,000 last quarter, up from $333,000 in Q2 and 13.9% higher than the overall Q3 U.S. median sale price of $329,970.

Of homes that were bought and sold by an iBuyer in Q3, the median markup — the difference between the purchase price and sale price — was 1.8%. That is down from a revised 6.7% markup for homes purchased by iBuyers in Q2 and eventually sold, and a peak of 8.6% for homes purchased by iBuyers in Q1. In eight metros, the typical home bought by an iBuyer in Q3 sold at a loss. The biggest median losses were in Austin (-7.7%), Fort Collins (-3.7%) and Colorado Springs (-2.5%). 

Phoenix overtook Q2 2021 leader Atlanta as the market with the most homes sold using an iBuyer, followed by Dallas–Fort Worth, Houston and Charlotte. Homeowners in Phoenix sold $1.47 billion worth of homes using an iBuying service last quarter, the first time a market has broken the $1 billion mark. 

In three metros, more than 1 in 10 homes sold last quarter were sold using an iBuyer: Greensboro (13.9%), Phoenix (12.1%) and Tucson (11%). The fastest-growing iBuyer markets in terms of number of iBuyer purchases are Colorado Springs (+266.2% since Q2), Austin (+184.4%), Fort Collins (+159.4%), Miami (+152.1%) and Cincinnati (+149.5%).

iBuyers typically held the homes they sold in Q3 for 94 days, which includes getting the home ready to sell, the time the home spent on the market and the time it took to close. That’s about a month longer than the record low of 63 days in Q2. The normal seasonal cooling of the housing market returned in Q3, contributing to the longer typical hold time. Across the U.S., typical days on market increased, for-sale inventory finally began to rise, and price cuts became more common.

Total iBuyer Purchases

iBuyer Market Share

Median Price – iBuyer Purchases

Total iBuyer Re-Sales

Median Markup – iBuyer Sales

Metro Area*

Q3 2021

Q2 2021

Q3 2021

Q2 2021

Q3 2021

Q2 2021

Q3 2021

Q2 2021

Q3 2021

Q2 2021

United States

27,244

14,961

1.9%

1.0% $375,800 $332,950 10,728 7,395 1.8% 6.7%

Phoenix, AZ

3,305

>1,672 12.1% 5.5% $433,301 $391,000 1,320 844 0.0%

4.3%

Atlanta, GA

3,033

2,083 8.5% 5.4% $315,900 $277,050 1,379 1,188 3.3% 8.8%

Dallas–Fort Worth, TX

2,167 >1,328 6.9% 4.3% $366,429 $312,981 1,004 >611 -0.9%

7.3%

Houston, TX

1,587

>859 5.1% 2.8% $294,000 $277,400 >677 >331 1.0% 4.4%

Charlotte, NC

1,534 874 9.5% 5.3% $325,593 $290,650 768 397 3.7%

6.7%

Tampa, FL

1,209

621 5.8% 2.8% $319,117 $275,800 512 352 4.1% 9.3%

Jacksonville, FL

1,018 483 9.4% 4.2% $299,050 $259,500 383 239 2.9%

8.1%

Las Vegas, NV

971

532 7.7% 4.0% $405,800 $367,800 393 296 2.3% 6.8%

Orlando, FL

966 610 6.3% 3.7% $330,933 $303,000 456 290 3.5%

7.2%

San Antonio, TX

919

486 8.0% 4.4% $298,905 $263,235 346 268 -1.6% 7.7%

Austin, TX

913 321 8.1% 2.9% $475,300 $422,300 142 108 -7.7%

0.0%

Denver, CO

847

406 5.0% 2.4% $545,100 $500,700 234 180 -1.2% 3.7%

Portland, OR

664 319 4.6% 2.3% $515,900 $481,500 190 118 0.9%

4.0%

Sacramento, CA

646

341 6.2% 3.0% $560,000 $513,000 189 107 0.4% 3.9%

Nashville, TN

642 403 4.4% 2.7% $361,200 $315,000 305 235 2.5%

8.5%

Riverside, CA

615

397 3.2% 1.9% $551,300 $496,450 230 139 3.2% 7.8%

Tucson, AZ

609 273 11.0% 4.0% $316,300 $286,900 208 161 0.0%

6.0%

Los Angeles–Long Beach–Anaheim, CA

599

383 2.0% 1.2% $787,789 $771,500 233 234 1.4% 4.6%

Minneapolis–St. Paul, MN

591 263 2.7% 1.4% $337,037 $300,200 152 120 -1.0%

2.8%

Raleigh, NC

574 408 7.1% 4.6% $355,250 $311,000 330 220 4.9% 8.6%

San Diego, CA

342 198 3.1% 1.7% $725,350 $692,000 105 81 -0.8%

4.9%

Miami–Fort Lauderdale, FL

300

119 0.8% 0.3% $378,700 $344,800 107 52 4.3% 6.9%

Cincinnati, OH

242 97 2.4% 1.1% $268,250 $245,400 63 44 0.9%

4.5%

Colorado Springs, CO

238

65 4.1% 1.2% $460,508 $420,000 45 31 -2.5% 6.4%

Lakeland, FL

237 117 7.9% 2.5% $278,628 $239,100 101 67 6.4%

9.4%

North Port–Sarasota-Bradenton, FL

199

116 2.7% 1.2% $349,350 $326,500 85 71 5.3% 9.6%

Daytona Beach, FL

196 130 3.6% 2.2% $264,400 $249,950 83 66 5.3%

9.9%

Durham, NC

180

107 5.9% 3.4% $376,000 $306,600 93 61 3.4%

11.5%

Greensboro, NC

93

46 13.9% 2.0% $220,000 $229,000 42 25 1.9% 8.0%

Fort Collins, CO

83 32 8.1% 1.1% $499,699 $453,650 28 23 -3.7%

7.8%

Seattle, WA

64 95 0.3% 0.5% $685,000 $610,000 30 36

N/A

6.4%

Salt Lake City, UT

62 42 1.3% 0.9% N/A N/A 29 11 N/A N/A

Greenville, SC

56 29 1.1% 0.5% N/A N/A 17 5 N/A

N/A

Birmingham, AL

52 41 0.9% 0.7% $228,100 $177,000 28 26 N/A

N/A

Washington, D.C.

44 49 0.1% 0.1% $430,000 $552,500 9 6 N/A

N/A

Ventura, CA

34 20 1.2% 0.7% N/A N/A 13 5 N/A

N/A

Zillow Q3 2021 iBuyer Report