Sellers Are More Confident They’ll Make Money

October 16, 2015

Home owners’ fear of selling their homes for less than what they paid is abating, as sellers grow more confident that they’ll recoup the amount they spent. Over the past two years, their confidence has grown 29 percent, according to a survey conducted by the National Association of REALTORS® of 1,000 adults in the nation’s 50 largest metro areas.

Seventy-one percent of home owners disagreed with the statement: “I do not think I could sell my house for what I paid for it.” That is up from 55 percent in 2009, 2010, and 2013. Only 27 percent agreed with that statement, which is down from 42 percent in 2013, according to NAR.

Sellers’ confidence will likely extend into next year too. Four in 10 Americans surveyed say they expect home prices to rise in their market over the next year.

Only 23 percent said they would like to move but don’t think they could sell their house in the current market, down from 38 percent two years ago.  Some 74 percent of owners said that would like to move, but think they could sell their house, an increase of 17 points over last years.

Sellers are showing greater confidence today than in the past four that they could sell their home in the current market too. Today, 74 percent feel like they could sell in the current market compared to 57 percent who were confident about selling in 2013.

Seller confidence will likely extend to their outlook for next year too.  Four in ten adults in the survey (41%) expect prices to rise in their market. Some 47 percent said prices will stay the same and only 6 percent expect them to decrease.

Strategies designed and administered this telephone survey conducted by professional interviewers.

Source: “Confidence in Recouping Purchase Price Soars,” Real Estate Economy Watch (Oct. 15, 2015)