And 1 in 10 plans to sell this year, according to realtor.com economists. But a fear of finding a home in their price range is the top reason holding many of them back.
CHICAGO – Inventory shortages have plagued markets across the country, but a new survey suggests a turnaround may begin to break for frustrated buyers who can’t find enough homes for sale.
Ten percent of homeowners say they plan to list their home for sale this year, and more than a quarter – 26% – say they plan to list within the next three years, according to a new realtor.com survey from 657 potential home sellers conducted during the week of March 29.
In addition, the homeowners most likely to sell have homes valued below $350,000, which could help relieve inventory woes in a, particularly tight price segment.
“In a typical year, we see about 8% of the nation’s homes hit the market, and we’re expecting about 25% more this year,” says George Ratiu, senior economist at realtor.com. “This signals that many homeowners who were wary to list during the pandemic are getting ready to do so, and this much-needed inventory – especially for starter homes – will begin to relieve buyers’ challenges in a very competitive market.”
While many homeowners seem ready to sell, they’re also hesitant. The biggest reason is a fear that they won’t find a new home within their price range, the survey found. Homeowners also aren’t selling because they’re:
- Not sure where they want to move
- Concerned about the current economic climate
- Worried about the logistics of buying and selling at the same time
- Unsure about showing a home during the pandemic
The majority of homeowners who want to sell in the next two to three years said that they’d be more likely to list their home sooner if they knew they could buy and sell perfectly, according to the realtor.com survey. Also, 37% of homeowners with plans to sell said that if they knew they could make a lot of money on their home sale, that also would be a motivator.
“With home prices at historic highs, now is a great time to sell a home, and many first-time sellers might be surprised to learn how much equity they have,” says Rachel Stults, deputy editor for realtor.com. “For consumers worried about the stress and planning involved, there are a number of resources available to help with everything – from perfectly timing buying and selling to removing the hassles of doing repairs and staging.”
Other factors that could prompt homeowners to sell sooner:
- More affordable homes on the market (33%)
- Avoiding the tricky logistics of buying and selling at the same time (29%)
- Freedom from preparing the home for sale (27%)
- Lower health risks from the COVID-19 pandemic (24%)
Source: realtor.com®
