There’s further proof that the U.S. is firmly in the middle of a seller’s market: 29% of homeowners who are considering selling plan to list their property for more than they think it’s worth, according to a survey released Wednesday by realtor.com.
While many sellers surveyed were planning to move for logistical reasons (such as downsizing or a change in family circumstances), 24% cited making a profit in the current market as a motivation, and 13% of those surveyed felt they should take advantage of high demand and rising prices.
“Low mortgage rates and a lack of available homes for sale have created a strong seller’s market, and these survey results show that homeowners think that they have the upper hand if they list their home soon,” realtor.com senior economist George Ratiu wrote in the report.
As such, 24% of prospective sellers surveyed expected to get offers above their asking prices, and 16% expected listing their home to result in a bidding war. A full 94% of sellers now expect to get more than they originally paid for their home.
In addition to rising prices, homes nationwide are selling 41% faster than last year, according to realtor.com’s data. One-fourth of sellers anticipate getting an offer within a week of listing, and 16% expect that offer to be all cash. Sixteen percent of sellers also expect buyers to waive contingencies including financing, appraisal and home inspection.
A bright spot to sky-high seller expectations is that more sellers are being drawn into the market, which could mean some long-awaited relief to a nationwide inventory shortage that continues to push up prices and competition.
“After a year of challenges which kept homeowners from listing their home, we are seeing sellers coming back, which should help moderate prices and bring more balance to the housing market over the coming months,” Mr. Ratiu said. “For homeowners planning to sell this year, research your local market conditions to ensure that your home’s price reflects neighborhood trends.”
SOURCE: Mansion Global