THE OFF-MARKET HOUSING MARKET
MLS SHARE OF SINGLE FAMI LY HOME SALES IN MARICOPA COUNTY, AZ (PHOENIX)
MARICOPA COUNTY (PHOENIX) iBUYERS
PUBLICLY RECORDED DEED SALES
MLS SALES COUNTS
MLS SHARE OF SALES
SOURCE: ARMLS, ATTOM DATA SOLUTIONS
the MLS. The analysis excluded non- arms length sales such as intra-family transfers and transfers to lenders via the foreclosure process from the public record counts. In Maricopa County, Arizona, home to the city of Phoenix, MLS-closed sales of single family homes represented just 75 percent of the single family home sales recorded with the county for 2016, up slightly from 74 percent in 2015, according to an ATTOM analysis — indicating about one in four sales in that county is not listed on the MLS. What do Dallas and Phoenix have in common? They are both testing grounds for a quickly growing alternative to listings for sale on the MLS: iBuyers such as Opendoor and Offerpad. Disrupter De Jour: iBuyers NAR figures for 2016 estimate about 1 percent of home sales during the
year were from owners to homebuying companies that purchase directly from homeowners that have not listed their homes for sale on the MLS. In the past those companies utilized offline methods to attract sellers. The yellow “We buy ugly homes” signs are a prime example of these offline methods. Now, however, there is a case to be made that direct transactions with homebuying companies might increase with the introduction of newer firms such as Opendoor and Offerpad that attract sellers largely utilizing online methods. An Opendoor entity (OD ARIZONA M LLC) was the second-biggest buyer of existing single family homes in Maricopa County in 2016, with 181, second only to a Blackstone-backed Invitation Homes entity (IH6 PROPERTY PHOENIX LP), which purchased 233 single family homes during the year, according to an ATTOM Data Solutions analysis of public record data.
All Opendoor-related entities identified in the public record data analysis cumulatively purchased 500 single family homes in Maricopa County in 2016, accounting for about 1 percent of all 72,145 existing single family home sales in the county during the year. The 500 purchased by Opendoor entities in 2016 was up 18 percent from 424 purchased in 2015 and up 82 percent from just six single family home purchases in Maricopa County in 2014. Year-to-date in 2017, Opendoor entities have purchased 102 single family homes in Maricopa County, indicating it may be slowing its acquisitions in that market. Meanwhile, fellow iBuyer Offerpad is continuing to ramp up its acquisitions in Maricopa County, with 280 year-to-date in 2017, up from 150 for all of 2016 and just eight for all of 2015.
OCTOBER 2017 | ATTOM DATA SOLUTIONS
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