Of homeowners looking to sell within the next 12 months, 86% are planning to buy a new home, but 82% of these seller-buyers feel “locked in” by their currently low mortgage rate, according to a new survey from Realtor.com.
Realtor.com and HarrisX’s new survey asked sellers their opinions and predictions about the near-future market and how their sales may proceed. The survey found that 56% of the seller-buyers mentioned said they are waiting for rates to come down, while 25% need to sell soon for personal reasons.
Key highlights:
- 85% 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.
- 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.
- 33% of potential sellers said that they want to take advantage of the current market and think they can make a profit.
- As for prices, 43% expect to get their asking price when selling, up from 27% in 2022.
- Meanwhile, 31% expect to get more than their asking price, compared to 30% in 2022.
- 37% of sellers expect their home to sell fast, as they predict to have an offer within a week. This is up from to 33% in 2022.
- 35% expect buyers to be willing to forgo contingencies like inspections and appraisals to make the deal, up from 30% in 2022.
- When it comes to offers, 34% expect an all-cash offer, up from 22% in 2022.
- Competition wise, 27% expect a bidding war to take place, down from 32% in 2022.
Major takeaway:
“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.”
Hannah Jones, an economic data analyst for Realtor.com®, added that ““Given the changing housing market, it’s important for buyers and sellers alike to have realistic expectations heading into a home sale. 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.”
