3 Reasons Why Homeowners Are Selling In 2024
You might be familiar with the "lock-in effect"—the idea that homeowners are reluctant to sell because they don't want to give up their low mortgage rate.
It's a real thing—especially compared to how many sellers we saw in 2019.
But homeowners are still putting their homes on the market every single week—and buyers are buying.
In fact, there were 20% more new contracts started in the U.S. at the end of 2023 compared to 2022. (Altos Research)
So why are homeowners choosing to sell now? The answer is different for every client that we work with, depending on their unique situation, but at a high-level, it could be because:
1. They know that buyers are buying at these prices. Quality listings are in high demand and few homes are taking a price cut. Nationally, only 34.8% of homes have taken a price cut which is in the normal range. (Altos Research)
2. They want to cash in their equity. The average U.S. homeowner gained $20,000 in home equity in the last year (CoreLogic) and depending on a variety of factors, some homeowners have gained even more.
3. They want to capitalize on the opportunity for a new home. Whether they're looking to downsize or upgrade to a bigger space, with rates falling, some homeowners are taking advantage of falling rates to make their move.
It's going to make for a competitive spring (or early spring?) market.
