An Increased Number of Homeowners Are Looking to Sell, Zillow Survey Finds

A tipping point could be on the horizon for the mortgage industry. A recent Zillow survey and some optimistic rate forecasts indicate that the market may be heating up again soon.

25% of Homeowners Are Considering Selling Their Home

When looking into the not-so-distant future, there is reason to be optimistic about home inventory. A July 2023 Zillow survey found that nearly 25% of homeowners are considering selling their home within the next three years, or currently have their home listed for sale.

This figure is significantly higher than the 15% of homeowners who said the same just one year ago.

The quarterly survey also found that homeowners with a mortgage rate above 5% are nearly twice as likely to plan to sell their home than those paying a rate below 5%.

Home Values Hit a Record-High in June as Current Inventory Shortages Lead to High Prices

The current shortage of for-sale homes is pushing up prices, as 50 of the largest metro areas saw home value increases for the second month in a row.

Zillow’s latest monthly report found that home values hit a record-high in June: $350,000 for the first time nationally.

“Home prices will be influenced by how much inventory is brought to market. Increased homebuilding will tame price growth, while limited construction will lead to home price appreciation outpacing income growth, ”Chief Economist at NAR, Lawrence Yun, says. “It is critical to expand supply as much as possible to widen access to home buying for more Americans.”

Fannie Mae, NAR, and MBA Publish Optimistic Rate Forecasts for 2024 and Beyond

Looking forward, Fannie Mae released a revised forecast model for 30-year fixed mortgage rates. The agency predicts rates drifting down to the low 6% range by the end of 2023, and further decreasing to the 5% range by the end of 2024.

Mike Fratantoni of Mortgage Bankers Association (MBA) anticipates declining rates similar to Fannie Mae’s forecast on the horizon as well.

The National Association of Realtors (NAR) published a similar forecast, predicting 30-year fixed rates to slowly drift down through the 6% range from now until 2024.

Final Thoughts

There are a number of tools available to help buyers understand how to make homeownership affordable and attainable. Borrowers can still land a home they can afford. Reach out to one of our team members to determine the best strategy for you and your family today.

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