The National Association of Realtors® has conducted a survey of 2,583 consumers this fall, and it looks like a larger-than-normal amount of homes will be hitting the market in the next six months. The survey asked participants to answer several questions about what is important to them in the sale of their home. Seller expectations are higher across the board than in a normal market because of lack of inventory, but as more homes hit the market buyers will have more options, and consequently more leverage.
Homeowners are interested in different features after spending so much time at home during the pandemic, and a space that better suits their family’s needs. Some want to move closer to friends and family. Additionally, the growth of remote work has made 23% of sellers say they want a home with a home office, and 19% say they no longer need to live near their workplace.
Buyers seeing more options this winter should still expect a competitive market. They should be ready for high asking prices and offer deadlines. About 22% of sellers will not pay for any repairs or improvements. Roughly 20% will want to rent back after close to enable them to buy without a home sale contingency.
A little more than a third of sellers expect buyers to forgo contingencies like inspections and appraisals, a quarter of sellers expect a bidding war, and almost 40% of sellers will expect more than asking price. These numbers are national, and in hot markets like Nashville will be even higher.
The pandemic has delayed plans for many Americans, and sellers looking to move on are no exception. Buyers should be ready to compete for desirable homes, but the increase in sellers should bring some relief from the inventory crunch.
Higher inventory levels have already helped to moderate last spring’s double-digit price growth. Home prices are seeing 8-9% annual growth range lately, according to realtor.com®.
Sellers who price their homes realistically for today’s market will likely meet their home sale expectations.
All information sourced from REALTOR Magazine and the National Association of Realtors®