In Sizzling Hot Market, What’s Keeping Sellers on Sidelines?

Key Highlights

• Only 1% of homeowners have homes currently listed for sale, according to Zillow
• Potential home sellers point to personal, financial, lifestyle and/or health concerns as reasons not to sell

Talk about a seller’s market with skyrocketing sales, skyrocketing home prices, rock bottom inventory and rock bottom interest rates. Why wouldn’t a homeowner who might be considering selling within the next three years not sell now?

Turns out that Zillow researchers just completed a survey with some 1,000 homeowners among the 99% of owners whose homes are currently not on the market on this very subject. Survey results reflect a difference between “all homeowners” and “homeowners considering selling within next 3 years.

Here’s what they found:

1. Concerns about not being able to find and/or afford new home

• 26% of all homeowners
• 31% of homeowners considering selling within 3 years

2. Life too uncertain
   1. 22% of all homeowners
   2. 34% of homeowners considering selling within 3 years
3. Anticipating a better home sale price if I wait
   1. 21% of all homeowners
   2. 39% of homeowners considering selling within 3 years
4. Planning/completing a home renovation
   1. 19% of all homeowners
   2. 31% of homeowners considering selling within 3 years
5. Current financial situation too uncertain/precarious
   1. 19% of all homeowners
   2. 31% of homeowners considering selling within 3 years
6. Concerns about own/family’s health during COVID pandemic
   1. 15% of all homeowners
   2. 25% of homeowners considering selling within 3 years
7. Recently refinanced home
   1. 15% of all homeowners
   2. 14% of homeowners considering selling within 3 years
8. Children/other family members moved back in to house
   1. 9% of all homeowners
   2. 10% of homeowners considering selling within 3 years
9. Home in forbearance
   1. 4% of all homeowners
   2. 6% of homeowners considering selling within 3 years

Financial anxiety and/or uncertainty cut across all age groups with a solid 31% saying that it would be better to sell later rather than now. 27% would-be sellers indicated a recent change in employment that involved a wage and/or hour reduction and 17% reported that their spouse/partner had either been laid off or were involuntarily unemployed.

Some reasons to wait to sell vary by age.

• Home renovation plans/completions
  • 35% of Gen Z and Millennial owners
  • 21% of Gen X
  • 14% of Boomers and Silent Generation owners
• Health concerns due to COVID
  • 20% of Gen Z and Millennial owners
  • 18% of Gen X
  • 11% of Boomers and Silent Generation owners

Thanks to Zillow.

Also read: Podcast: Exclusive Mega Agent Interview Featuring Al Stasek, Boomers Want To “Age in Place”, More Than 70% of Couples Argue When Buying or Selling a Home