Realtor.com® Listapalooza – the
best time to list – is now a national holiday, according to
National Day Archives
SANTA
CLARA, Calif., April 6,
2022 /PRNewswire/ -- As the final countdown begins to
Realtor.com® Listapalooza (April
10-16), a new national holiday, the company today released
survey data that shows homeowners are gearing up to sell this
Spring and Summer. According to the report, 64% of prospective 2022
sellers anticipate doing so within the next six months, and with
high expectations for making a profit. Still, the potential uptick
in newly-listed homes indicates some much-needed relief could be on
the horizon for buyers – especially first-timers. Today's sellers
expect to ask for relatively affordable prices and include a higher
share of millennials than last Spring, suggesting that more
Americans plan to upgrade from their starter homes.
The Realtor.com® survey of 3,000 consumers, which was
conducted online by HarrisX in February
2022, also asked about the experiences of recent sellers,
who said determining the right time to list was the longest stage
of the process.
"Our survey data illustrates the importance of helping empower
homeowners to take control of the listing process, by providing
information about market conditions, prices and seasonal trends,
like the best dates to list your home. While sellers are expected
to hold the upper hand in 2022, navigating the listing process
remains a challenge – particularly for those also buying in today's
fast-paced market," said George
Ratiu, Senior Economist & Manager of Economic Research
at Realtor.com®. "Homeowners who are ready to move
forward with pandemic-delayed plans will find plenty of opportunity
this Spring and Summer. Although accelerating inflation is leading
to higher housing costs and living expenses, many buyers remain
interested in finding a home. At the same time, recent housing
trends suggest demand is beginning to moderate as higher mortgage
rates push monthly payments out of some buyers' budgets,
underscoring the long-term need for more affordable inventory."
Homeowners are ready to take advantage of the Spring and
Summer buying seasons
Survey data suggests some relief is
on the horizon for Americans grappling with one of the worst
housing shortages of all-time. Almost two-thirds (64%) of
prospective 2022 sellers anticipate listing a home within the next
six months. Whether these sellers follow-through with their plans
will be key to the forecasted 2022 inventory recovery and critical
for buyers hoping to find a home before mortgage rates climb even
further. In a positive sign that homeowners are serious about
listing, many sellers are already getting their home ready.
However, they're doing so with great expectations of the current
market, which means buyers should prepare for sellers asking for
high offer prices, quick closes, waived contingencies and more.
- The majority of 2022 prospective sellers plan to list within
the next six months, with 9% already listed and the remaining
getting ready to list within the next 30 days (11%), 1-3 months
(24%) or 4-6 months (20%).
- Compared to those who planned to list last Spring, this year's
prospective sellers have higher expectations of the hot housing
market, including asking for more than their home is worth (42% vs.
29%) and refusing to pay for repairs or improvements (28% vs.
24%).
- When asked why they're planning to list in 2022, surveyed
sellers' top reason was wanting to profit off the current market,
tied with their home no longer meeting their families needs (each
at 31%).
- Homeowners' motivating factors behind moving also reflect the
impact of pandemic trends, such as wanting different features after
spending so much time at home (15%) and no longer needing to live
near their office (14%).
Millennials are moving on up, signaling more starter homes
for first-time buyers
With the oldest millennials already
40-years-old, these homeowners are playing an important role in
adding to the supply of starter homes. Millennials represent nearly
half (49%) of sellers who plan to list within the next six months
and many anticipate selling at relatively affordable prices. This
is welcome news for first-time buyers, who face fierce competition
for limited available starter homes. Combined with rising
affordability issues as home prices and mortgage rates climb,
survey data offers some hope for first-time buyers, based on:
- More millennials plan to list within the next six months than
in March 2021 (75% vs. 66%), and
account for a higher share of all 2022 prospective sellers (42.0%
vs. 26.0%).
- In a further sign that older millennials are moving on up from
their starter homes, the share of surveyed millennials who have
sold a home before was nearly as high as the overall rate (61% vs.
64%).
- Millennials have plenty of financial motivation to stick to
their plans, with top reasons for selling reflecting the pressures
of rising inflation and economic uncertainties. Compared to all
survey respondents, higher shares of Gen Y sellers want a more
affordable home (34% vs. 21%) and need the sale money ASAP (14% vs.
11%).
- In a potential sign of more starter homes coming onto the
market, the majority of 2022 prospective sellers expect to list in
relatively affordable price ranges: $350,000 or less (43%) and $351,000-$500,000
(22%).
Recent experiences highlight the importance of preparation,
even in a seller's market
The COVID housing market has
largely favored sellers and many who recently sold were able to
take advantage of bidding wars, fast closings, waived
contingencies, inspections and appraisals, and more. At the same
time, sellers' experiences highlight the importance of preparation,
especially as buyer demand is beginning to moderate. Even among
recent sellers who found success, the majority took steps to get
their home ready to list, such as making repairs, cleaning and
decluttering. Additionally, although many sellers were able to list
quickly, 41% said the process took longer than they originally
anticipated.
- Over half (53%) of sellers spent less than a month preparing
their home for listing, while another 26% said the process took 1-3
months.
- Forty-one percent of recent sellers said getting their home
ready to list took longer than they expected. Determining the right
time to enter the market took longer than any step of the home prep
process, with 38% of respondents reporting that this decision took
more than 3 months.
- Among steps successful sellers took to prepare their home for
listing, top responses included repairs and updates (59%) and
cleaning and decluttering (67%). While minor cosmetic updates were
the top repair sellers made before listing, at 53% of respondents,
nearly as many fully repainted interiors and replaced flooring (47%
each).
- The majority (80%) of recent sellers sold at or above their
asking price. Other top benefits of the competitive market
included: buyers forgoing repair concessions (28%), offers within a
week (27%), and waived contingencies like inspections (25%).
Methodology
This Realtor.com® survey was
conducted online within the United
States from February 16-18,
2022 among 3,000 adults in the
United States by HarrisX. The sampling margin of error of
this poll is plus or minus 1.8 percentage points. The results
reflect a nationally representative sample of U.S. adults. Results
were weighted for age by gender, region, race/ethnicity, and
income where necessary to align them with their actual proportions
in the population.
About Realtor.com®
Realtor.com®
makes buying, selling, renting and living in homes easier and more
rewarding for everyone. Realtor.com® pioneered the world
of digital real estate more than 25 years ago, and today through
its website and mobile apps offers a marketplace where people can
learn about their options, trust in the transparency of information
provided to them, and get services and resources that are
personalized to their needs. Using proprietary data science and
machine learning technology, Realtor.com® pairs buyers
and sellers with local agents in their market, helping take the
guesswork out of buying and selling a home. For professionals,
Realtor.com® is a trusted provider of consumer
connections and branding solutions that help them succeed in
today's on-demand world. Realtor.com® is operated by
News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move,
Inc. For more information, visit Realtor.com®.
Media Contact
rachel.conner@move.com
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SOURCE Realtor.com