New homebuyers with little money draw the line at the fixer-uppers

For homebuyers trying to break into a tough US housing marketit seems there is relief: there are new offers on the website to get up.

However, the quality of housing is deteriorating. Sometimes in a shocking way.

Of the approximately 1,400 resale agents surveyed nationwide by John Burns Research & Consulting, 99% said they have seen homes for sale in need of repairs or updates, with two-thirds of agents saying the listings had deficiencies in at least four different areas , including outdated kitchens and bathrooms.

The takeaway: Desperate homebuyers aren’t that desperate. Fixer-uppers can stay in the market longer and sometimes require discounts, with higher prices and mortgage rates already straining the budgets of Americans looking to buy a home.

“When officers identified the repairs and updates needed to make heritage homes habitable, we were shocked by the scale,” said one report by Jody Kahn and Dillan Krieg at John Burns. “Buyers want homes that are ready to move in.”

Inventories have dried up in recent years as many owners became reluctant to sell and gave up lower mortgage rates on existing loans. While the number of homes for sale is still below normal, the number of new homes added in the four weeks ended April 28 rose 15% from a year earlier, Redfin Corp. said.

Some sellers think they can sell at high prices even without making upgrades and improvements, according to John Burns’ research. But increasing repair costs may be too much for potential buyers who are already pushing their limits.

“Many buyers go out of their way to purchase a home and miss the opportunity and desire to tackle post-closing remodeling,” the report said.