The hot homebuying search: fixer-uppers
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More U.S. homebuyers are chasing fixer-uppers than four years ago, when mortgage rates were lower and houses were more affordable, Realtor.com reports.
The big picture: Keyword searches for "fixer-upper" have more than tripled since 2021, even as those listings become a bit harder to find, according to the real estate site's analysis.
- Fixer-uppers now draw 52% more page views per property than similarly aged, affordable listings.
Between the lines: For first-time buyers, fixer-uppers (smaller, older homes that need work) can offer cheaper entry. For flippers, they're a chance to profit.
- The median fixer-upper was priced at $200,000 as of July, less than half the $436,250 median for all single-family homes.
State of play: Fixer-uppers are more plentiful in areas where homes are older and there's less new construction.
- Syracuse, New York; Toledo, Ohio; and New Orleans saw the highest shares of fixer-upper listings, while Memphis, Tennessee; Boise, Idaho; and Las Vegas saw the lowest, among 100 U.S. metros analyzed.
The fine print: Researchers define fixer-uppers as single-family homes for sale on Realtor.com that are at least 20 years old, listed at a price-per-square-foot below the median for their ZIP code, and marketed as needing repairs or updates.
- That includes phrases like "could use some TLC" and "good bones."
Reality check: Clicking on fixer-uppers is easier than buying one.
- Inspections and repair issues are a top reason home sales are falling through at a record rate, Redfin research shows.
The bottom line: Fixer-uppers can stand out in a tough market.
- "Sellers who are willing to advertise a lower price for their home and market it as a fixer-upper may find more success with online home shoppers than if they put in the time and money themselves," Realtor.com senior economist Joel Berner wrote in the report.
