Elevated mortgage rates and home prices have made sellers hesitant to list their homes this spring. Consequently, 50 percent of homesellers are waiting for a late-year rate drop before putting their properties on the market.
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Realtor.com’s best week to sell has finally arrived, but a recent survey showed that market challenges have dampened homesellers’ enthusiasm for the spring market. Many homeowners have been patiently waiting for mortgage rates to decrease so they can sell their current homes and upgrade to a new one at a more affordable price. The slow easing of mortgage rates throughout the year is prompting some potential sellers to enter the market in 2024, with most planning to buy a new home while selling their current one.
According to Realtor.com’s survey of 1,003 homesellers, 79 percent regret not selling sooner to capitalize on past cycles of strong homebuyer activity. As a result, the expectations for a bidding war, quick offers, and offers with waived contingencies have decreased significantly compared to 2023 due to the decline in seller leverage caused by high mortgage rates and soaring home prices.
Furthermore, the share of homeowners planning to sell and buy simultaneously has dropped, with many expressing concerns about securing a new home with higher-rate loans. A majority of sellers anticipate their new mortgage rates to be the same or higher than their current rates, adding to their budgeting worries.
While half of homesellers are waiting for rate declines before listing their homes, others have been compelled to sell due to personal circumstances. Financial considerations play a significant role in sellers’ decisions, with many aiming to make a profit or take advantage of recent price gains.
The average seller plans to list their home for $462,000, with most hoping to sell within the $250,000 to $500,000 range. Family-related needs also drive home sales, including the desire to move closer to family, to downsize or upsize, or due to life events like marriage, children, or divorce.
For those not intending to buy a new home, renting, already owning a place, or moving in with family or friends are common alternatives. Overall, homesellers are navigating a challenging market landscape impacted by fluctuating mortgage rates and home prices, influencing their selling decisions and future plans.
The real estate market is experiencing a shift, with 50 percent of homesellers planning to wait for a late-year rate drop before listing their homes. This hesitancy is due to elevated mortgage rates and home prices, which have dampened enthusiasm for the spring market. Despite this, 79 percent of homesellers surveyed wish they had sold sooner to take advantage of previous cycles of robust homebuyer activity. The decline in seller leverage has also caused a decrease in expectations for bidding wars and quick offers. Many homesellers are nervous about buying a new home with a higher-rate loan, as 64 percent expect their new mortgage rate to be the same or higher than their existing rate. Financial considerations are driving the decision to sell, with the majority hoping to make a profit or take advantage of recent price gains. Other reasons for selling include familial needs, such as moving closer to family, needing more or less space, or going through marriage, children, or divorce. For those who do not plan to purchase a new home, renting, already owning another place, or moving in with family or friends are common alternatives. Overall, homesellers are navigating a complex market landscape and making decisions based on both financial and personal considerations.
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