Potential home sellers are feeling optimistic this year, with 81% believing they will receive their asking price or more, according to survey results released Monday by Realtor.com.
At the same time, the real estate listings company observed that many homeowners are blaming high mortgage rates for their decision to stay in their current home, preferring to sit on the sidelines of a seller’s market until interest rates come down.
“Spring is historically the best time to sell, and this year, sellers are entering the season with high expectations,” said Laura Eddy, vice president of research and insights at Realtor.com, in a press release. “Despite their optimism, our survey suggests that potential sellers — especially those who have been waiting to sell for a year or more — still feel locked in due to interest rates.”
According to the survey, 55% of homeowners who have been considering selling their home for more than one year cited high mortgage rates on their next home purchase as the reason they’ve stayed put.
Among all survey respondents, 78% of potential sellers think interest rates will either stay the same or increase over the next 12 months. Of those who anticipate rate increases, 43% said rate hikes would increase their likelihood of selling, while 20% believe that rising rates would decrease the chances that they sell their home during the next year.
Though a minority of respondents predicted that mortgage rates will decrease over the next 12 months, most of those homeowners said that such an outcome would raise their odds of selling.
“Interestingly, 69% of potential sellers who think rates are going to decline say this expectation increases their likelihood to sell,” the report stated. “This suggests that potential sellers are motivated by interest rate changes, and interest rates impact potential sellers’ likeliness to list.”
But for many people, selling their home is simply a matter of necessity dictated by life changes.
“A majority, 79%, of potential sellers are considering selling out of necessity, including the need for more or less space, for family, life events, work or because they can no longer afford their home,” the Realtor.com report noted.
