Home sellers show increased confidence

by Steve Randall02 May 2017
The spring sales season has brought an increased confidence among US home sellers with 1 in 4 saying they have no concerns about selling now.

A survey carried out in April by Redfin reveals that ‘no concerns’ was the top-ranking answer among the 179 sellers polled, with a reduction in the percentage of sellers concerned about finding a replacement home. In January almost a quarter said this was a concern, in April 18 per cent did.

New listings remain subdued though as sellers remain reluctant to list their homes but it seems that sellers are concerned that they may miss out on better returns by selling too soon.

“Would-be sellers are likely waiting for prices to peak; they’re trying to time the market to fetch the largest possible gain,” said Redfin chief economist Nela Richardson. Whether the confidence of the current cohort of sellers translates into more new listings in the coming months is the number one question that determines whether 2017 will be a good year or a great year.”

The second most common concern among sellers is that potential buyers may be put off by rising mortgage rates, followed by a worry that prices may fall before they sell.

A lower-than-hoped appraisal, general economic conditions and the high price of homes dissuading buyers, are all among the main concerns of sellers in April.

For pricing, the sellers’ top strategy is to pitch their home in a middle range for comparable properties in their neighborhood but the percentage who believe that they will definitely need to negotiate is around 15 per cent, down from 21 per cent a year earlier.

A fifth of sellers believe they have the power in the market, up 7 percentage points from January.

More market update:
HELOC owners face sharp payment increases in 2017
Goldman Sachs making progress on mortgage settlements

More market update: