Realtor.com’s headline “The Best Time To Sell is Here,” may sound like wishful thinking, but a new survey from the real estate marketplace shows 85% of homeowners have been anxiously waiting on the sidelines, waiting to sell for one to three years. In 2024, the golden handcuffs will finally come off, according to Realtor.com’s 2024 housing market forecast; prospective sellers have a renewed sense of urgency, with 79% wishing they had listed sooner when the market was much hotter.
Many homeowners who are thinking of selling this year cite finances among the factors behind their decision, with 24% saying they want to make a profit and 21% saying they want to take advantage of recent price gains.
Changing family needs are also driving the decision to sell. Reasons included the need to move for family (24%), the need for more space (23%), to downsize (23%), and because of life changes such as marriage, children or divorce (18%).
“Plenty of homeowners have been eagerly waiting for mortgage rates to come down so that they can sell their current home and more affordably upgrade to a new one,” said Realtor.com Chief Economist Danielle Hale. “With mortgage rates expected to ease slowly throughout the year, some potential sellers are planning to get off the sidelines in 2024 and make a move, with the majority expecting to buy a new home at the same time that they sell their current one.”
The 2024 housing market forecast estimates average mortgage rates of 6.8% will edge down to reach 6.5% by the end of the year. Yet, homeowners planning to sell are aware of ongoing affordability headwinds as well. The survey reports that 73% of homeowners who plan to sell their home this year plan to buy another at the same time, down from 85% last year. And 64% of potential sellers expect the mortgage rate on their new home to be the same or higher than their existing rate.
Nearly 80% of prospective sellers say they feel locked into their home due to interest rates, down 3% from 2023. Of those who feel locked into their rate, 50% say they plan to wait until rates come down, while 29% say they need to sell soon for personal reasons. In 2023, 56% said they'd wait for rates to come down, while 25% said they needed to sell. Plus, 81% of sellers who think their new rate will be higher say they're concerned that the higher rate will impact how much home they can afford.
Overall, prospective sellers are wising up and adjusting their expectations to the new market. As the market begins cooling in areas across the country, 12% expect a bidding war to take place, compared to 27% in 2023. Only 15% expect to get more than their asking price, down from 31% last year. A less frenzied market from years past means 15% expect to have an offer within a week, down from 37% in 2023, and 15% expect buyers to be willing to forgo contingencies like inspections and appraisals to make the deal, down from 35% in 2023.
On average, homeowners planning to sell this year say they want to sell their home for around $462,000, with one-third saying they are hoping for between $400,000 to $500,000.
