Those looking to sell in the next year are
happy with their home equity but don't want to take on a higher
mortgage rate in order to move
SANTA
CLARA, Calif., April 17,
2023 /PRNewswire/ -- The Best Time to Sell your
home is upon us, but there is one major issue holding sellers
back – high mortgage rates. According to a new survey from
Realtor.com® and HarrisX, the vast majority (86%) of
those planning to sell their home in the next 12 months are also
planning to buy a new home. And because most of these sellers will
be taking on a new mortgage, this creates a major affordability
hurdle. In fact, 82% of these seller-buyers feel "locked in" by
their currently low mortgage rate. As a result, more than half of
seller-buyers (56%) who are planning to sell in the next 12 months
said they are waiting for rates to come down, while 25% need to
sell soon for personal reasons.
"One positive aspect that came out of the pandemic was
historically low mortgage rates – and many people took advantage of
this opportunity to buy their first home, upgrade to a more
expensive home or refinance the home they were in," said
Realtor.com® Chief Economist Danielle Hale. "Unfortunately, this comes with a
bit of a catch-22, as homeowners who locked in a 30-year fixed rate
in the 2-3% range don't necessarily want to give that up in
exchange for a rate in the 6-7% range."
Home equity at all-time highs
The good news for
sellers is that they have a lot of equity in their current home.
Eighty-five percent of potential sellers are happy with the amount
of equity they have in their home. Specifically, 74% estimate that
they have more than $100,000 in home
equity and 20% estimate that number to be more than $300,000.
Sellers still have sky-high expectations
Despite
higher mortgage rates, sellers still have high expectations for
their home sale, in many cases even higher than potential sellers
who were surveyed in Aug. 2022.
Thirty-three percent of potential sellers said that they want to
take advantage of the current market and think they can make a
profit. Even in this shifting market:
- 43% expect to get their asking price (up from 27% in 2022)
- 37% expect to have an offer within a week (compared to 33% in
2022)
- 35% expect buyers to be willing to forgo contingencies like
inspections and appraisals to make the deal (compared to 30% in
2022)
- 34% expect an all-cash offer (up from 22% in 2022)
- 31% expect to get more than their asking price (compared to 30%
in 2022)
- 27% expect a bidding war to take place (compared to 32% in
2022)
"Given the changing housing market, it's important for buyers
and sellers alike to have realistic expectations heading into a
home sale," said Hannah Jones,
Realtor.com® economic data analyst. "By understanding
the local market, sellers can make sure that they're pricing their
home well to help ensure a quick sale and avoid a home that lingers
on the market."
Survey Methodology
The survey was conducted online
from Feb. 3-10, 2023, among 2,286
adults in the U.S. by HarrisX. The sampling margin of error of this
poll is +/- 2.1 percentage points and larger for subgroups. The
results reflect a nationally representative sample of U.S. adults.
Results were weighted for age by gender, region, race/ethnicity,
and income where necessary to align them with their actual
proportions in the population.
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