Homeowners Wait on Prices to Leverage Current Home

October 2, 2018

Many homeowners say they plan to use the proceeds from the sale of their current home to fund the down payment of their next home. And as they look at rising costs, some are holding off selling their home longer hoping that prices will continue to rise and they’ll be able to sell their home for an even higher price, according to a new consumer housing sentiment study from CoreLogic and RTi Research.

Leveraging home

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Sixty-six percent of homeowners who are considering buying in the next 10 years say they’ll need to sell their current home to finance their next one. Thirty-five percent of recent home buyers said they used funds from the sale of their previous home to finance the down payment of their current home.

“In some markets, home buyers and sellers are remaining cautious and taking a pause as price appreciation continues to rise,” says Frank Martell, president and CEO of CoreLogic. “By waiting to sell, homeowners believe they will get the greatest return on their investment; the more money they have for a down payment, the easier the purchase payments will be for their next home.”

CoreLogic reported through its Home Price Index that home prices rose nationally by 5.5 percent year over year in August, and prices are projected to increase by another 4.7 percent by August 2019.

Source: 
Home Price Insights,” CoreLogic (Oct. 2, 2018)