Zillow released its Q1 2022 iBuyer Report in early June, revealing that iBuyers resold record-high numbers of properties over the period.
But what does the activity of some of real estate’s biggest, most institutional players tell us about the current state of the housing market?
Real estate is big business, and gone are the days when buying and selling houses was just about people wanting a place to live (if that was ever the case in the first place).
Flipping houses is more popular than ever, and technology has made it easier than ever to do it efficiently — anyone can access relevant data and information. iBuying takes things one step further.
iBuyers are companies that use technology and algorithms to estimate how much listed properties could reach in the future and what price they’d need to buy them for to secure a profit.
Then, they make instant cash offers at this price and complete the process online, without any of the usual hassles. It’s this “instant” aspect that gives iBuyers their name.
Zillow’s report found a record number of iBuying resales in Q1, with 26,537 properties resold using the practice.
However, fewer properties were sold by (standard) buyers through iBuying in Q1 2022 compared to the previous quarter.