With the number of houses on the market near historic lows and sales prices jumping by 18%, potential sellers are sensing an opportunity for a big payday.
In the current seller’s market, where multiple bids on houses are now the norm, 29% of would-be home sellers expect to set the list price above what they think the house is worth, according to a new Relator.com survey released Thursday.
The median sales price for an existing single-family home soared 18.4% to $334,500 in March, marking a historic high, according to the National Association of Realtors. Housing inventory stood at 1.07 million units at the end of that month, down 28% from a year earlier.
Bidding wars: ‘I don’t care that I’m overpaying.’ Houses are selling over asking price.
(Photo: Getty Images)
“Low mortgage rates and a lack of available homes for sale have created a strong seller’s market,” says George Ratiu, a senior economist at Realtor.com. “Homeowners think that they have the upper hand if they list their home soon.”
Realtor.com commissioned HarrisX, a market research firm, to survey 657 potential home sellers the week of March 26 – April 7.
According to the findings, many homeowners who plan to sell within the next year are doing so because their current homes no longer meet the needs of their families. Others need a home office or features that help them work remotely.
Insights from the survey:
24%: Cited making a profit in the current market.
13%: Think they should take advantage of the current seller’s market.
29%: Are going to ask for more than they think their home is worth.
94%: Expect to get more than what they originally paid for the house.
42%: Expect to get up to 25% more than what they paid.
31%: Expect to get 26-60% more.
12%: Expect to get 61-100% more.
10%: Expect to get more than 100% above what they paid for the home.
53%: Expect to get their asking price.
24%: Expect to get more than asking.
16%: Expect a bidding war to take place.
In a competitive real estate market, buyers must be prepared to make an offer at a moment’s notice. (Photo: Getty Images)
Swapna Venugopal Ramaswamy is the Housing and Economy reporter for USA TODAY. Follow her on Twitter @SwapnaVenugopal
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