Redfin's John Whitley offers up the firm's latest survey of more than 700 home sellers in the third quarter which measured their motivations and confidence in the housing market.
When asked why they're selling their homes, just 16% said it was to buy another house before prices or interest rates get higher. But a year ago, a whopping 59% of sellers said the same. In the third quarter, sellers were more likely to say they were selling because they wanted a bigger or nicer home (29%), are relocating to a new city (27%) or have a desire to downsize (21%)
“Seller optimism is flying high right now,” Redfin chief economist Nela Richardson said. “But buyers are more grounded now and pricing a home too high is risky. More sellers are having to drop their initial asking price this fall than a year ago. ”
Sellers this year are more confident than last year that the market is in their favor. When asked to describe the current balance of power in the market, 60 percent of respondents said sellers had the power, up from 46 percent last year ... All this positivity is enticing sellers to list at higher prices.
“Many sellers are coming to the market with an expectation that their home will sell for the same amount their neighbor’s did three months ago, but that’s no longer an accurate reflection of the market,” said Boston Redfin agent Scott Driscoll. “Even more than normal for this time of year, I’m frequently reining in seller’s expectations, advising them to consider the very latest data on nearby sales and homebuyer demand.”