Could relief be on the horizon for would-be buyers frustrated by the shortage of available homes? Well, maybe. More sellers appear poised to list their homes this winter—a big win for the inventory-starved housing market. But many of these homeowners aren’t going to part with their properties unless they’re receiving top dollar.
“Buyers should be ready for high asking prices,” says George Ratiu, manager of economic research for Realtor.com. “But an increase in new sellers could mean some relief from the inventory crunch.”
These high expectations could make it harder for buyers already grappling with record-high home prices and rising mortgage interest rates.
Almost half of these sellers, 45%, want to cash in on the hot market as they expect they’ll be able to make a profit off the sale while nearly as many expect to have an offer within a week. They’re also anticipating buyers will continue forgoing contingencies to secure the deals. Just over a third are expecting to receive an all-cash offer.
Most folks considering listing their homes know it’s a seller’s market. They’ve seen their neighbors’ homes sell for unheard-of prices and heard tales of heated bidding wars. More than a third have researched the value of their homes and others in their neighborhoods. Some have even begun investing to make their homes presentable to potential buyers.
There is a bright spot for cash-strapped buyers. More than three-quarters of sellers, 77%, say they would accept a lower offer to close faster.
Most sellers are also buyers who are going to need places to live. They’re entering the fray because they say their home no longer meets their family’s needs, 37%, and because they want to be closer to family and friends, 32%. After spending more time than ever at home due to the COVID-19 pandemic, 33% decided they want different home features.
Others who no longer want to commute to their jobs every day are looking for a home with an office space, making up about 19% of sellers. Another 19% no longer need to live near their jobs. That means they can live just about anywhere they choose.