Despite the odds, the spring housing market is in full swing, and a new survey from Realtor.com reveals two optimistic seller sentiments: 

 

> 29% of potential sellers are willing to look past high interest rates and hit the market 

 

> 79% of current sellers wish they had listed their home sooner 

 

At NJ Lenders Corp, we’re as ready as you are. Don’t miss out - the time to enter the housing market is now! 

“Home Sellers Have Adjusted Their Expectations”

 

More than 80% of surveyed potential sellers have been considering a home sale between 1 and 3 years. 

 

79% of current sellers, however, wish they had listed their home sooner.

 

“Home sellers are realizing they’re no longer locked-in,” says Steve Grossman, Vice President and Senior Loan Officer at NJ Lenders Corp. 

 

“Plenty of homeowners have been eagerly waiting for mortgage rates to come down so that they can sell their current home and more affordably upgrade to a new one,” Realtor.com Chief Economist Danielle Hale said in a recent statement.

 

“With mortgage rates expected to ease slowly throughout the year, some potential sellers are planning to get off the sidelines in 2024 and make a move.”

 

Hannah Jones, senior economic research analyst at Realtor.com, echoes the sentiment, saying, “Home sellers have adjusted their expectations. They’re becoming a little more realistic given the current market conditions.” 

 

What’s Motivating Current Homeowners to Sell? 

 

24.4% of homeowners are still looking to make a profit when they sell. The majority of homeowners, however, are more motivated by changing lifestyle demands.  

 

> 23.7% of sellers wish to relocate closer to family 

 

> 23.4% of sellers need more space

 

> 22.9% of sellers are looking to downsize 

 

Many potential sellers who do not plan to purchase a new home at the time they sell already own another home to live in (33.2%), plan to rent (31.3%), or plan to move in with family or friends (26.17%).

 

The increase in motivation is apparent, as current inventory levels are 14% higher than this time last year.

 

Purchase Demand Remains Steady

 

Freddie Mac chief economist Sam Khater noted purchase demand remained “steady” in the face of rising rates.

 

“With rates staying higher for longer, many homebuyers are adjusting,” Khater said, “as evidenced by this week’s report that sales of newly built homes saw the biggest increase since December 2022.”

 

Pending sales of existing US homes increased this spring as well, hitting their highest level for a year as the housing market remains strong despite inventory shortages and climbing interest rates. 

 

The National Association of Realtors (NAR) reported that pending sales increased by 3.4% in early spring, a surprise to economists surveyed by FactSet, who had anticipated sales to decrease by 0.3%. 

 

First-time buyer demand remains strong, as the demographic represented 32% of sales in March, up from just 26% in February. 

 

Closing Thoughts

 

Choosing when to sell your home can be a complicated decision, especially if it would require taking on a higher-rate mortgage or purchasing in a high-priced market. 

 

NJ Lenders Corp. offers an extensive array of mortgage solutions to empower our clients in any market. 

 

Limited home inventory means buyers are eager for fresh options, which means 2024 could be an excellent time to enter the market. Don’t be among those who wished they hadn’t waited!