Overwhelming majority of recent home sellers ‘regret waiting to sell’

A new survey from Realtor.com and Censuswide reveals that an overwhelming majority of recent home sellers appear to have some regret about waiting to sell their homes. About 79% of those surveyed nationwide said they believe they would have been able to take advantage of a hotter housing market had they listed their homes sooner.

As more homeowners have realistic market expectations this year, 2024 could prove to be a good time for some to sell, according to the survey. 

Of the homeowners who said they plan to sell their homes sometime this year, more than 80% have been considering a sale for between 1 and 3 years, according to the survey, which offers insight into how potential and recent sellers feel about their home sales.

 “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,” Danielle Hale, chief economist at Realtor.com, said. “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, with the majority expecting to buy a new home at the same time that they sell their current one.”

Is the wait over?

Almost three-quarters of potential sellers plan to purchase a home at the same time, down from 85% this time last year. Sellers might be less enthusiastic about purchasing due to still-high mortgage rates. 

Of the prospective sellers who plan to buy a new home this year, 79% said they felt locked into their current home due to their low mortgage interest rate. Of those who feel locked into their rate, 50% say they plan to wait until rates come down, while 29% say they need to sell soon for personal reasons, such as family (24%), the need for more space (23%), to downsize (23%) and marriage, children or divorce (18%).

Survey respondents said finances are among the factors behind their decision to sell, with 24% saying they want to make a profit and 21% saying they want to take advantage of recent price gains.

Sixty-four percent of potential sellers who plan to buy expect the mortgage rate on their new home to be the same or higher than their existing rate, and 81% of sellers who think their new rate will be higher say they’re concerned about how much home they can afford.

What about interest rates?

“Hindsight is always better than foresight. You can’t time the market,” Eileen Giorgi, president of the Silicon Valley Association of Realtors, said.  “In a high-interest rate environment, sellers need to seriously consider their reasons for selling. There is no cookie-cutter recipe. Every situation is different.”

Those locked in a very low-mortgage interest rate and not in a hurry to move, may wish to stay in their current home for now, she said. Those who want to sell so they can buy another home, may consider how the numbers figure into their budget with higher interest rates and the net proceeds they receive from the sale of their  home. With some adjustments, you may be able to make it work and take advantage of the low inventory rather than wait till interest rates come down when you will likely be up against more competition from other sellers, Giorgi said.

“It’s a personal choice,” she added.

Silicon Valley Association of Realtors (SILVAR) is a professional trade organization representing 5,000 Realtors and affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term Realtor is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors and who subscribes to its strict Code of Ethics.