This Is What Home Sellers Entering the Market Are Expecting This Winter
Could relief be on the horizon for would-be buyers frustrated by the shortage of available homes? Well, maybe. More sellers appear poised to list their homes this winter—a big win for the inventory-starved housing market. But many of these homeowners aren’t going to part with their properties unless they’re receiving top dollar.
Nearly half of sellers plan to put their homes up for sale within the next six months, according to a recent Realtor.com® survey. While that’s a boon for the housing market, many of these future sellers are expecting offers above their asking price, bidding wars, and buyers to waive contingencies like inspections and appraisals.
The report was based on a survey of nearly 2,600 adults conducted between Sept. 23 and Oct. 1.
“Buyers should be ready for high asking prices,” says George Ratiu, manager of economic research for Realtor.com. “But an increase in new sellers could mean some relief from the inventory crunch.”
These high expectations could make it harder for buyers already grappling with record-high home prices and rising mortgage interest rates.
Almost half of these sellers, 45%, want to cash in on the hot market as they expect they’ll be able to make a profit off the sale while nearly as many expect to have an offer within a week. They’re also anticipating buyers will continue forgoing contingencies to secure the deals. Just over a third are expecting to receive an all-cash offer.
Most folks considering listing their homes know it’s a seller’s market. They’ve seen their neighbors’ homes sell for unheard-of prices and heard tales of heated bidding wars. More than a third have researched the value of their homes and others in their neighborhoods. Some have even begun investing to make their homes presentable to potential buyers.
There is a bright spot for cash-strapped buyers. More than three-quarters of sellers, 77%, say they would accept a lower offer to close faster.
Why are home sellers getting ready to enter the market?
Most sellers are also buyers who are going to need places to live. That means they’re also going to have to brave the fierce competition in the market.
They’re entering the fray because they say their home no longer meets their family’s needs, 37%, and because they want to be closer to family and friends, 32%. After spending more time than ever at home due to the COVID-19 pandemic, 33% decided they want different home features.
Others who no longer want to commute to their jobs every day are looking for a home with an office space, making up about 19% of sellers. Another 19% no longer need to live near their jobs. That means they can live just about anywhere they choose.
However, they’re realistic about just how tough the market is right now. While just under a third of sellers plan to purchase a new home, 19% of sellers plan to move in with family after the sale and 11% are expecting to rent. Meanwhile, 29% plan to rent their homes back from their buyers after the sale, likely to give them time to find their next homes.
By Clare Trapasso