More Americans are preparing to sell their homes. Recent data from the National Association of Realtors (NAR) shows that the housing market is witnessing an increasing number of people who already own a home, entering into the market as potential sellers in the coming months.
Studies conducted by NAR revealed that an estimated 5.6 million homeowners are currently planning on selling their properties within the next 12 months. This amounts to a survey record high of 11% of homeowners intending to list their homes for sale, which is a significantly larger share than the 8% recorded at the end of last year.
These findings are cause for optimism in the real estate industry, indicating that many Americans are confident in the current market conditions and are comfortable making the decision to list their homes. A major contributing factor to the high interest in selling appears to be the ongoing increase in home prices.
Real estate agents have observed that the seemingly ever-increasing demand for owner-occupied housing has helped to drive home values higher, creating a positive feedback loop in which homeowners have benefited from an increase in equity. With a greater proportion of homeowners now feeling more secure in their equity position, the heightened interest in selling is likely attributable to owners feeling confident in their ability to reap the rewards of their increased value.
The survey results also pointed to a trend of increased migration away from rural areas and towards more densely populated urban centers. Many homeowners in rural areas appear to be selling in order to take advantage of the economic opportunities found in larger cities. This type of demographic shift is likely to continue to be a major driver of housing sales in the coming months.
Overall, the survey results suggest that homeowners are more confident in the real estate market and are increasingly taking advantage of its benefits. The combination of strong housing demand and increasing home values is creating an environment in which sellers are feeling comfortable and confident in their decisions to list their homes. This trend is likely to be one of the key factors continuing to drive the real estate market’s growth in 2021.
In conclusion, the ongoing surge in house prices, combined with the increasing numbers of homeowners planning to list their homes, paints a positive outlook for the future of the real estate market. The confidence of sellers is indicative of the current market conditions, and is likely to contribute to the continued growth of the housing market throughout this year.
This article was contributed on Oct 20, 2023
