Seller-buyers are making a splash this spring, with 72% of home sellers also planning to buy their next one this year, according to a new survey from Realtor.com.
Realtor partnered with HarrisX to survey homeowners nationwide. The results showed a market flooded with younger seller-buyers looking for more affordable homes to accommodate growing families.
Millennials are the most active seller-buyers in the market (47%). Gen Z, the youngest market-ready cohort, came in second at 25%, followed by Gen X (15%) and Baby Boomers (12%).
Most seller-buyers said they planned to buy a home first, then list their current home (46%), the choice that offers the most flexibility. Another 44% said they plan to sell and buy at the same time, while one in ten said they were going to sell and live somewhere else while house hunting.
They are largely concentrated in the South and West regions (69%), with the Northeast and Midwest both lagging behind at 15%. They are also largely centered in urban or suburban areas, with few sellers looking to buy in rural areas.
Respondents said affordability and upgrades were most important in their search, followed by outdoor features, size, number of bedrooms, and acreage.
In acknowledgment that the market remains primed for sellers, nearly a third said they will ask for more than they think their house is worth, while 27% will ask for a quick close. Almost a quarter do not intend to accept offers below asking price, and 24% do not plan to pay for any repairs or improvements to their home.
But seller-buyers may face serious challenges while looking for a new home. Mortgage loan application volume dropped another 1.2% last week after plunging by 11% the week prior, responding to interest rate hikes and skyrocketing home price appreciation. Goldman Sachs economists estimate housing prices will rise 10% this year while Bank of America predicts a 15% increase.
New-home sales fell 16.6% in April from the revised March figures and were down 26.9% YOY, prompting heightened recession fears.
“The April drop for new home sales is a clear recession warning,” NAHB Chief Economist Robert Dietz said.
“The combination of higher prices and increased interest rates are generating a notable slowing of the housing market. While the nation needs additional housing, home sales are slackening as tightening monetary policy continues to put upward pressure on mortgage rates and supply chain disruptions raise construction costs.”