Many Would-Be Sellers Feel Hesitant Due to Mortgage Rates
By Kelly Leighton | April 26, 2023 | 2 min. read
More than 80% of homeowners who would like to sell their current property and purchase a new one are delaying because they have a lower mortgage rate on their home than the current market rate.
According to Realtor.com®, 82% of homeowners feel stuck in their situation due to not wanting to pay a higher mortgage rate on a new home. More than 50% said they will wait until mortgage rates drop before they list their home. A quarter said they will sell soon due to personal reasons, even if that means paying a higher mortgage rate. Gen X is the generation most likely to feel ‘locked in’ to their mortgage rate, at 97%, but millennials and Gen Z weren’t far behind, with 87% of each generation feeling the same way. However, more than half of baby boomers said they don’t feel trapped by their mortgage rate. Eighty-five percent of respondents said they are content with how much home equity they have, with the site reporting that homeowners have a close to record-high level of equity in their homes.
Despite concerns about losing a lower mortgage rate, 33% of potential sellers said they are thinking of selling this year to take advantage of the market and earn a profit, 32% said their home no longer fits their needs, 30% want different features in their homes. The majority of Gen Z reported they want to be closer to family, while millennials want a home office and their current property doesn’t have one. Gen X said their home no longer fits their needs and baby boomers want a smaller home.
Forty-two percent of would-be sellers said they expect to get their asking price, 37% expect to have a contract within a week of listing, 35% think buyers will forgo contingencies and 34% expect an all-cash offer.
Subscribe To JustListed Daily Emails
You’ll be the first to know about real estate trends and various legal happenings. Stay up-to-date by subscribing to JustListed.