More homeowners are planning to list their homes for sale later this year, bringing hope that inventory shortages that have plagued markets across the U.S. could soon abate.
That’s according to a recent survey of 657 potential home sellers by realtor.com, which revealed that around 10% of homeowners say they’re planning to list their home before the end of the year. Further, 26% say they are planning to try and sell their homes within the next three years.
What’s even more promising is that the homeowners who say they are most likely to sell own homes valued at less than $350,000, which could help to relieve inventor woes in what is one of the tightest price segments – entry level homes.
“In a typical year, we see about 8% of the nation’s homes hit the market, and we’re expecting about 25% more this year,” said George Ratiu, senior economist at realtor.com. “This signals that many homeowners who were wary to list during the pandemic are getting ready to do so, and this much-needed inventory—especially for starter homes—will begin to relieve buyers’ challenges in a very competitive market.”
One of the reasons so many homeowners are hesitant to sell is that they are worried they won’t be able to buy a new home that’s within their price range. Others have said they’re not selling because they’re not sure where to move to. The current economic climate, the logistics involved in selling and buying at the same time, and concerns about the COVID-19 pandemic were also cited by homeowners that refuse to sell.
Of those who said they’re planning to sell within the next three years, most admitted they would sell their homes even sooner if they knew they could easily find a new property to replace it. And another 37% of those homeowners if they knew they could make a big profit on the same, that would also motivate them to do so faster.
“With home prices at historic highs, now is a great time to sell a home and many first-time sellers might be surprised to learn how much equity they have,” said Rachel Stults, deputy editor for realtor.com. “For consumers who are worried about the stress and planning involved, there are a number of resources available to help with everything—from perfectly timing buying and selling to removing the hassles of doing repairs and staging.”
Another 33% of homeowners said they they would be willing to sell sooner if there were more affordable homes on the market, while 29% said they would do so if they didn’t have to handle the logistics of buying and selling at the same time.