Homeowners have more realistic market
expectations this year with only 15% expecting to get more than
their asking price, down from 31% in 2023. Nearly 8 in 10 recent
sellers think listing sooner would have meant entering a hotter
housing market.
SANTA
CLARA, Calif., April 15,
2024 /PRNewswire/ -- The Best Time to
Sell is here, and most prospective sellers have been sitting
on the sidelines for a while. According to a new survey from
Realtor.com® and Censuswide, homeowners planning to
sell in 2024 have been thinking about selling their homes for
an average of 2 years, with 85% considering a sale for between 1-3
years. At the same time, most recent sellers (79%), feel that if
they'd listed sooner, they would have been able to take advantage
of a hotter housing market.
"Plenty of homeowners have been eagerly waiting for mortgage
rates to come down so that they can sell their current home and
more affordably upgrade to a new one," said Realtor.com®
Chief Economist Danielle Hale. "With
mortgage rates expected to ease slowly throughout the year, some
potential sellers are planning to get off the sidelines in 2024 and
make a move, with the majority expecting to buy a new home at the
same time that they sell their current one."
Fewer seller-buyers feel locked in by
rate
Realtor.com's® housing forecast for
2024 estimates average mortgage rates of 6.8%, with rates
edging down to reach 6.5% by the end of the year. While rates and
the market will stabilize as we go through 2024, homeowners who are
planning to sell are aware of ongoing affordability headwinds.
- 73% of homeowners who plan to sell their home this year plan to
buy another at the same time, down from 85% last year.
- 79% of prospective sellers who plan to buy a new home say they
feel locked into their current home due to a low interest rate,
down from 82% in 2023.
- Of those who feel locked into their rate, 50% say they plan to
wait until rates come down, while 29% say they need to sell soon
for personal reasons. In 2023, 56% said they'd wait for rates to
come down, while 25% said they needed to sell.
- 64% of potential sellers who also plan to buy expect the
mortgage rate on their new home to be the same or higher than their
existing rate.
- 81% of sellers who think their new rate will be higher say
they're concerned that the higher rate will impact how much home
they can afford.
Would-be sellers have more realistic expectations for their
home sale than last year
While still optimistic about
the market, potential sellers are approaching their sale this
spring with noticeably more realistic expectations than sellers in
previous years. With the market cooling in many areas, 12% expect a
bidding war to take place, compared to 27% in 2023, and only 15%
expect to get more than their asking price, down from 31% last
year. A less frenzied market from years past means 15% expect to
have an offer within a week, down from 37% in 2023, and 15% expect
buyers to be willing to forgo contingencies like inspections and
appraisals to make the deal, down from 35% in
2023.
On average, homeowners planning to sell this year say they want
to sell their home for around $462,000, with one-third saying they are hoping
for between $400,000-500,000. Around
24% say they are hoping for $250,000-400,000, while 24% are looking for
$500,000-$750,000.
Finances top list of reasons to sell
Many homeowners
who are thinking of selling this year cite finances among the
factors behind their decision, with 24% saying they want to make a
profit and 21% saying they want to take advantage of recent price
gains. Changing family needs are also driving the decision to sell.
Reasons included the need to move for family (24%), the need for
more space (23%), to downsize (23%) and because of life changes
such as marriage, children or divorce (18%).
Some sellers are looking to alternatives for their next
home
With timing challenges around selling and buying
another home at the same time, especially in the current low
inventory market, some sellers are getting creative with
alternatives to buying their next home that could give them greater
flexibility for buying again in the future. Of the 27% of
homeowners who don't plan to buy another home when they sell
theirs, 31% plan to rent, 33% say they already own another place to
live, and 26% say they're planning to move in with family or
friends.
Homeowners thinking about entering the market this spring can
visit realtor.com/sell for the information, tools and support they
need to get started, including how to get proposals from multiple
agents in their area, with RealChoice Selling, who can help them
make the most from their sale.
Survey methodology
The research was conducted by
Censuswide among 1,003 respondents in the U.S. who are planning to
sell their home in the next year, and 1,000 respondents who sold
their home in the last year. The fieldwork took place February 22 – March 4,
2024. Censuswide abides by and employs members of the Market
Research Society which is based on the ESOMAR principles.
About
Realtor.com®
Realtor.com® is an
open real estate marketplace built for everyone.
Realtor.com® pioneered the world of digital real
estate more than 25 years ago. Today, through its website and
mobile apps, Realtor.com® is a trusted guide for
consumers, empowering more people to find their way home by
breaking down barriers, helping them make the right connections,
and creating confidence through expert insights and guidance. For
professionals, Realtor.com® is a trusted partner
for business growth, offering consumer connections and branding
solutions that help them succeed in today's on-demand world.
Realtor.com® is operated by News Corp [Nasdaq:
NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more
information, visit Realtor.com®.
Media contact: press@realtor.com
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SOURCE realtor.com