Despite the return of housing market seasonality, homesellers are still expecting a red-hot fall and winter homebuying season similar to 2020, according to realtor.com‘s latest survey released on Thursday.
George Ratiu
“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,” realtor.com Manager of Economic Research George Ratiu said in a prepared statement on Thursday.
“Buyers should be ready for high asking prices and offer deadlines as seller expectations of the upcoming market are greater than in the spring.”
More than a fourth of homeowners plan to sell their homes within the upcoming year, with a whopping 65 percent planning to list their homes within the next six months. Nineteen percent of homeowners surveyed have already placed their homes on the market, while another 93 percent have taken preliminary steps, such as talking to an agent (28 percent) and researching their home’s value and pricing needed repairs (36 percent).
Millennials and Gen-Zers are the most eager to sell, with 40 percent of them planning to sell their home by the end of December. Although Gen-Zers are expecting to attract buyers at a more affordable median listing price of $350,000 (45 percent), millennials are aiming to tap into the higher end of the market with a median listing price of $750,000 (49 percent). Overall, 20 percent of sellers intend to sell their homes for $1 million or more.
“With a competitive market marked by multiple bids, price escalation clauses and contingency waivers, Spring 2021 saw sharp price increases. The trends seem to have motivated homeowners across a wider price spectrum to list their homes,” the report said of the growing number of luxury homesellers entering the market.
“While 58 percent of sellers in Spring were planning to bring a home priced at or below $350,000, that share dropped to 34 percent by the fall.”
“The shift was driven by homeowners higher up the price spectrum,” it added.
Despite rising mortgage rates and the return of a slower fall and winter homebuying season, homeowners said lifestyle changes have pushed them to enter the housing market now, get a quick closing (29 percent) and still garner an offer that’s above their home’s value (42 percent). However, a whopping 77 percent of sellers said they’d accept an offer below the asking price if buyers offered a quicker closing process.
Lexie Holbert
“As we discussed in prior research, the COVID pandemic changed what Americans want in their homes, spurred by the need for distancing, more flexible spaces and affordability,” the report read. “Close to four in ten homeowners in the fall survey mentioned their current home was no longer fitting, compared with 30 percent in the spring.”
Although a sizable share of homeowners are optimistic about selling, even more are wary of listing their home because they’re unsure about their ability to find another home in their price range (28 percent). Homeowners are also concerned about the economy and the risk of an impending slowdown.
“The right time to sell your home is a deeply personal decision that has to be right for you and your family,” realtor.com Home and Living Expert Lexie Holbert said. “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.”
