SANTA CLARA, Calif.,
Nov. 11, 2021 /PRNewswire/
-- After sitting on the sidelines as low mortgage rates fueled
homebuyer demand and listing price growth throughout the pandemic,
the majority of prospective sellers1 are
eager to enter the housing market within the next six months,
according to a new Realtor.com® Survey released
today. Although sellers' expectations for bidding wars and
fast-paced sales have only gotten higher since the spring, the
potential uptick in new listings offers holiday hope to buyers
challenged by the shortage of for-sale homes.
"The pandemic has delayed plans for many Americans, and
homeowners looking to move on to the next stage of life are no
exception. Recent survey data suggests the majority of prospective
sellers are actively preparing to enter the market this winter,"
said George Ratiu, Manager of
Economic Research for Realtor.com®. "Buyers should be
ready for high asking prices and offer deadlines as seller
expectations of the upcoming market are greater than in the spring,
but an increase in new sellers could mean some relief from the
inventory crunch. In addition, as more homes have entered the
for-sale market, price growth has moderated from the spring's
double-digit levels to a more approachable 8%-9% range. Seasonality
will play a key role in seller activity levels as we approach the
typically-slower holiday period, with new listings already slipping
in recent weeks. As buyers race against the clock of rising
mortgage rates, sellers who price their homes in line with today's
market and stick to their plans will likely see their expectations
met."
Realtor.com®'s survey of 2,583 consumers, which was
conducted online by HarrisX in September-October 2021, found that:
The majority of prospective sellers plan to list before the
end of the year or in early 2022.
- Among homeowners who indicated they will enter the market in
the next year, 65% expect to within six months, including 19% who
have already listed their home.
- Compared to the spring (76%), more of today's prospective
sellers (93%) have already taken steps toward listing their home,
including working with an agent (28%).
- More than one-third of prospective sellers, at 36% each, have
researched the value of their home and others in their
neighborhood, as well as started making repairs or
decluttering.
Consumers' top reasons for selling reflect the rising
influence of more time spent at home during COVID.
- Compared to the spring (15%), nearly two-times as many
prospective sellers (33%) have realized they want different home
features after spending more time at home.
- With more sellers having children at home this winter (65%)
than in the spring (43%), family considerations are a top reason
behind homeowner decisions to enter the market: 37% of prospective
sellers say their home no longer meets their family's needs and 32%
want to move closer to friends and family.
- The rise in remote work is also a key driver this winter: 23%
of sellers are looking for a home office and 19% no longer need to
live near their workplace, up from 6% in March.
Sellers have greater expectations of the current market this
winter than in the spring.
- Nearly half of today's prospective sellers are eager to take
advantage of the current market and think they can make a profit
(45%), nearly doubling from the spring (24%).
- When asked how the current market impacts the terms they will
ask for, top responses included asking for above what they think
their home is currently worth (42%) and asking for a quick close
(29%).
- Compared to the spring, more of today's prospective sellers
anticipate that buyers will compete in bidding wars, offer above
asking, forgo contingencies like inspections and appraisals and
more. (See table 1 below.)
Today's prospective sellers plan to list in relatively
affordable price ranges and are potentially more willing to
compromise if their expectations aren't met.
- Sellers with homes at the core of the market ($351,000-$750,000)
remained the same over March (29%). However, more sellers plan to
list in the $500,001-$750,000 price range, which overlaps with recent
median listing prices in increasingly popular first-time buyer
cities like Riverside, Calif.
($540,000), Austin ($546,000) and Denver ($600,000).
- More than three-quarters (77%) of prospective sellers would be
willing to accept a lower offer to close quickly versus just over
half in March (54%).
- Compared to Spring sellers, a higher number of today's
prospective sellers plan to take alternative routes like moving in
with family (19%), as well as temporarily renting their home back
from the buyer (29%). (See table 2 below.)
"The right time to sell your home is a deeply personal decision
that has to be right for you and your family. For homeowners who do
feel ready to sell, getting pricing right from the start is key to
a fast and successful home sale in any market – take the goldilocks
approach," said Lexie Holbert, Home
& Living Expert at Realtor.com®. "If you're looking
for resources and tools to help with everything from setting a
price to finding your family's next home at the same time,
Realtor.com® users can explore options like initial cash
offers from Opendoor in its Seller's Marketplace."
Table
1
|
|
|
|
|
|
What are your
plans after selling your home?
|
March
2021
|
Sept.-Oct.
2021
|
I plan to buy a next
home to move into
|
62%
|
31%
|
I'm moving in with
family
|
5%
|
19%
|
I'm moving into a
retirement home
|
1%
|
16%
|
I'm planning to
rent
|
10%
|
11%
|
I'm planning to
purchase a mobile home/RV
|
2%
|
10%
|
I'm planning to move
into another property that I own
|
7%
|
9%
|
No plans. I don't
live in the home I'm selling.
|
8%
|
3%
|
|
Table
2
|
|
Which of the
following do you expect to happen as a result of selling your home
in 2021?
|
March
2021
|
Sept.-Oct.
2021
|
Expect buyers to be
willing to forgo contingencies like inspections and appraisals to
make the deal
|
16%
|
44%
|
Expect to get my
asking price
|
53%
|
43%
|
Expect to have an
offer within a week
|
25%
|
42%
|
Expect to get more
than my asking price
|
24%
|
39%
|
Expect a bidding war
to take place
|
16%
|
38%
|
Expect an all-cash
offer
|
16%
|
35%
|
Do not expect any of
these
|
13%
|
1%
|
Methodology
Realtor.com® commissioned
HarrisX to conduct a national survey of consumers. The total sample
size was 2,583 adults. The survey was carried out online from
Sept. 23-Oct. 1, 2021. The sampling
margin of error of this poll is ±1.9 percentage points. The figures
represent a national view of U.S. adults. Results were weighted for
age, gender, region, race/ethnicity and income, as well as those
first-time homebuyers or those selling in the next 12 months, where
necessary to align them with their actual proportions in the
population.
About Realtor.com®
Realtor.com®
makes buying, selling, renting and living in homes easier and more
rewarding for everyone. Realtor.com® pioneered the world
of digital real estate more than 20 years ago, and today through
its website and mobile apps is a trusted source for the
information, tools and professional expertise that help people move
confidently through every step of their home journey. Using
proprietary data science and machine learning technology,
Realtor.com® pairs buyers and sellers with local agents
in their market, helping take the guesswork out of buying and
selling a home. For professionals, Realtor.com® is a
trusted provider of 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. under a perpetual
license from the National Association of REALTORS®. For
more information, visit Realtor.com®.
Media Contact
rachel.conner@move.com
1 In this release, prospective
sellers refers to surveyed homeowners who plan to sell their home
within the next 12 months.
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