The Top Reasons Homeowners Are Selling in 2024

 

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Zillow’s latest seller report includes recent data on seller motivation—specifically major life events and specific changes sellers are looking for in their next home.

It also highlights the decision-making process for buyers across generations, including the time spent considering their decision (before listing) and the share of sellers who consider renting out their property rather than selling it.

Read on for the highlights.

Life Events Drive Homeowners to Sell

Nearly eight in ten sellers (78%) cited at least one major life event as a factor behind their decision to sell. The most common was a change in household or family size, with more than half of all sellers (51%) citing it as a strong motivator.

In second place, more than two-thirds (37%) cited a job change or transfer (37%).

Life events most likely to motivate homeowners to sell/move: 

1. Change in household or family size (51% of total sellers)
2. New job or job transfer (37%)
3. Working remotely more often (35%)
4. Retired (32%)
5. Got married, divorced, or separated (32%)
6. Working remotely less often (29%)
7. Job loss or other involuntary unemployment (29%)
8. NET: Life event influenced (78%)

Home Characteristics Influencing Selling Decisions

A little less than half of all sellers (48%) wanted to live in a different location, making that the most-desired change. Next in line among the top home-related motivators were the home being too small (22%) and the seller wanting a different layout or floor plan (22%).

About one in six (16%) said their home was too big—or too high-maintenance.

Desired changes that contributed most to seller decisions:

1. Location: “I wanted to live somewhere else.” (48% of total sellers)
2. Home was too small (22%)
3. “I wanted a different layout/floor plan” (22%)
4. “I wanted different/updated features and finishes” (19%)
5. Home was too big (16%)
6. Home needed too much maintenance (16%)
7. Something else (5%)

Selling Timelines and Considerations

Nearly half of all sellers (47%) described their selling timeline as “medium” urgency, followed by 39% who described it as “relaxed” and just 16% facing a “short” timeline with a need to sell quickly.

Breakdown of seller timelines: 

• Short: “I had to sell my home quickly” (18% of total sellers)
• Medium: “There was some urgency, but I was not rushed” (47%)
• Relaxed: “I was able to take my time and wait for the best offer” (35%)

Most sellers took three to four months to consider their decision before listing their homes, with 34% of older sellers (60+ years) taking six months or more.

Time sellers spent (before listing) considering their decision to sell:

• Less than one month (9% of total sellers)
• One to less than two months (13%)
• Two to less than three months (23%)
• Three to less than four months (19%)
• Four to less than six months (13%)
• Six months or more (23%)

Rental Consideration Before Selling

Nearly two-thirds of all sellers (66%) thought about renting out their home before they listed it, while 28% “seriously considered” it. Rental consideration has increased from 47% in 2021, with younger sellers showing more interest in exploring this option.

Rental consideration among total sellers:

• Never considered renting out home (34% of total sellers)
• Seriously considered renting out instead of selling (28%)
• Thought about renting out—but more serious about selling (38%)
• NET: Considered renting out their home (66%)

Among sellers aged 60 years or more, 64% never considered renting out their home, compared to 17% of sellers aged 30 to 39 and 18% of sellers aged 18 to 29.

Only 36% of Baby Boomer sellers considered renting their home out, compared to 82% of sellers aged 18 to 29 and 83% of sellers aged 30 to 39—followed by 72% of sellers in the 40-49 year group and 66% of those aged 50 to 59.

Key Details: 

• According to Zillow’s latest seller report, 78% of homeowners who list their homes for sale are motivated to sell due to major life events, such as changes in family size or job relocations. 
• Most sellers take 3-4 months to decide, with 48% seeking a new location and others wanting more space or a different layout. 
• Nearly two-thirds (66%) consider renting out their home before ultimately selling, with younger sellers more likely to consider it. 

Posted by Sarah Lentz | Oct 3, 2024 | Housing Market

 https://nowbam.com/the-top-reasons-homeowners-are-selling-in-2024/

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