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Relocation. Relocation. Relocation.
That is apparently becoming the mantra among home sellers who also plan to buy a new home in the near future.
According to a Realtor.com survey, 63% of this year’s seller-buyers will likely be priced out of the market if costs keep rising. But data also shows that many are willing to go the extra mile(s) to make their move.
The survey showed that nearly half (45%) of 2022 seller-buyers plan to buy outside of their current city or town. Their top reason for a cross-market move? Lower cost of housing, which 25% of respondents said was the key factor in moving,
Nine percent also said they even anticipated moving to another state.
According to the survey, seller-buyers said the top current market conditions most likely to impact their plans were inflation and the price of housing, both at 39%.
“While an increase in new sellers could play a critical role in the inventory recovery, nearly three-quarters (72%) of surveyed homeowners who plan to sell are also buying a home this year, adding complexity to an already complicated task,” said George Ratiu, senior economist & manager of economic research at Realtor.com. "As seller-buyers, many stand to profit from record-high home prices, but are also challenged by the lack of affordable listings and rising cost pressures."
“Still," Ratiu added, "our survey data offers hope for the success of this year’s seller-buyers, potentially enabled by trends that have accelerated during COVID, like the rise in remote work, which shows significant sticking power. Many move-up buyers are leveraging newfound flexibility to employ creative strategies, such as relocating to an area offering homes that meet their family’s needs without breaking their budgets.”
Other highlights included
- With the majority of 2022 seller-buyers currently living in the South (37%) or West (33%) – home to Sun Belt metros, where listing prices have skyrocketed in recent years – a cross-market move could mean more opportunities to find affordable inventory.
- Roughly half of respondents are targeting prices of $500,000 and below on both the sell (49%) and buy (53%) sides of their transaction, despite top-reported reasons for a move including expanding households and needing more space. This further suggests that move-up buyers are searching in areas offering more house for the money.
- When asked how their plans to buy will affect their expectations for the home they sell, top responses were requesting more than they think their house is worth (32%) and a quick close (27%).
- For help with their transactions, most seller-buyers are considering: working with one real estate agent on both transactions (37%), selling their current home to an iBuyer (34%), or working with a company that will help them buy and rent the home until they close on their listing (29%).