Nearly a Quarter of Homeowners Intend To Sell Their Home in the Next Three Years
Nearly a quarter of homeowners say they are considering selling their home in the next three years or have their home currently listed for sale, a significant increase from a year ago. In a market in desperate need of more for-sale listings, this new finding, from Zillow Group Population Science’s Quarterly Survey of Homeowner Intentions and Preferences (QSHIP), suggests that inventory levels dragged down by rate-locked homeowners might soon be on the rise.
Overall, 23% of homeowners surveyed in June of 2023 say they are either listing their home for sale or considering selling their home in the next three years, up from 19% in Q1 and 15% a year ago. Among those, four in 10 said they are considering selling in the next year.
The homeowners considering selling in the next three years most often (66%) cited a desire for an upgraded home with nicer features as the reason. Half said it was because they expect to get more money now than in the future, and 45% said a growing family is influencing their decision to sell and move.
Among those not considering a sale in the next three years, 79% said it’s because they love their home.
A lack of for-sale inventory continues to hamper the market for existing homes. More than 28% fewer homes entered the for-sale market in June compared to a year ago, helping to push the total number of active listings for buyers to choose from down 10% year-over-year. Mortgage rates remain elevated, having more than doubled in the past year, leaving many homeowners reluctant to sell and take on a more expensive monthly payment at a higher rate. Indeed, about one in three (35%) QSHIP respondents who did not intend to sell their home in the next three years cited a concern about the ability to find or afford a new home as a reason why.
Homeowners with a mortgage rate above 5% are nearly twice as likely to say that they plan to sell their home than those paying a rate below 5%. About 90% of mortgage holders surveyed reported having a rate below 6%, while almost a third reported a rate less than 3%.