SANTA CLARA, Calif – Home prices continue to escalate as the inventory shortage worsens. Realtor.com’s latest housing report reveals that 64% of prospective home sellers intend to list their home by October, of whom 9% have already listed their home.

The study found that the two primary motivations for selling are new familial needs (31%) and the desire for updated features (15%), which is not surprising because the majority of sellers planning to make a move are millennials ready to swap their starter home for larger ones (49%).

Older millennials who are in their late 30s to early 40s will likely lead the listing charge, Realtor.com said, as 61% of millennial respondents said they’ve previously sold a home at least once. This group of sellers seeks to offer relatively affordable listings, with 43% asking for $350,000 or less and 22% asking for no more than $500,000.

However, millennial sellers could find themselves in a risky situation as buyers. Compared to all survey respondents, higher shares of millennials want a more affordable home (34% vs. 21%) and need the sale money as soon as possible (14% vs. 11%) to help offset inflation, student loan debt and other economic burdens.

Compared to last year, a higher number of home sellers are planning to list for more than what their home is worth (42% vs. 29%) as buyers continue to bypass repair concessions (28%), make offers within a week (27%) and waive contingencies such as inspections (25%).

The study warned against overlooking listing preparations. Sellers who made updates (59%), cleaned and decluttered (67%), or fully repainted interiors and replaced flooring (47%) had the best outcomes.

Source: Inman (04/06/22) McPherson, Marian

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