Just how much of a seller’s market is it right now? Well, nearly everyone who plans to sell their home in the next year expects to sell it for more than what they paid.
According to a new survey of prospective home sellers conducted by realtor.com, 94% of home sellers expect to make a profit in the next year. Beyond that, 10% of the home sellers expect to get double what they paid.
The perceived ability to make a profit is a big driver for why people may list their homes for sale. According to the survey, 24% of those surveyed said that making a profit in the current market was a main reason to list their home. Additionally, 13% said they think they should take advantage of current market conditions.
As a result, nearly 30% of home sellers plan to ask for more than they think their home is worth.
The survey also showed that more than half of the prospective sellers expect to sell their house for their asking price, while 24% expect to get more than their asking price. Additionally, 16% of sellers expect there to be a bidding war over their house.
"Low mortgage rates and a lack of available homes for sale have created a strong seller's market, and these survey results show that homeowners think that they have the upper hand if they list their home soon," said George Ratiu, senior economist, realtor.com.
"However, after a year of challenges which kept homeowners from listing their home, we are seeing sellers coming back which should help moderate prices and bring more balance to the housing market over the coming months,” Ratiu added.
If that happens, the market could tip back toward buyers, or at least even out a bit.