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®.
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SOURCE realtor.com
