SEATTLE—Tech-driven real estate broker Redfin (www.redfin.com) recently released its latest survey of homebuyers. Data was collected from February 22 to February 25, capturing sentiment of 1,119 active homebuyers across 19 U.S. markets who had toured a home with a Redfin agent since November 29, 2012. The Redfin Real-Time Homebuyer Survey is a companion to the quarterly Home-Seller Survey and Agent Survey.

Results Snapshot:

-- 79% of homebuyers believe that home prices will increase in their
neighborhood in the next 12 months, up from 71% last quarter;
-- 22% believe that home prices will rise "a lot" this year, more than
doubling the percentage of homebuyers who felt that way last quarter;
-- 40% of respondents believe now is a good time to buy a home, down from
48% last quarter;
-- 48% believe now is a good time to sell a home, up from just 27% last
quarter;
-- 66% listed low inventory as a top concern, up from 59% in the fourth
quarter;
-- 40% indicated that rising home prices are their main concern, up from
33% last quarter; and
-- 58% cited low interest rates as their top reason to buy now, up just one
percentage point from last quarter.
So far in 2013, Redfin has seen demand surge and inventory shrink, a very frustrating combination for homebuyers looking to buy while interest rates are still low and before home prices rise much more. Most homebuyers are facing fierce competition, with many homes receiving dozens of offers at once. Redfin agents advise clients to be prepared before they enter the market by lining up financing in advance and understanding the absolute highest price they can afford before entering a bidding war where emotions are likely to take over.