Housing inventory relief could come by this winter

The severely squeezed housing supply could be alleviated as soon as this winter.

About 65% of prospective home sellers plan to list their properties within the next six months, according to a Realtor.com survey of 2,583 consumers conducted in October. Among them, 19% said they had already listed their houses, 10% said they would in the next 30 days and 17% said within the next three months.

The pandemic both created a frenzied environment for buyers and delayed timelines for would-be sellers. Now, it appears homeowners looking to move are readying themselves to take that next step, according to George Ratiu, manager of economic research for Realtor.com.

"Buyers should be ready for high asking prices and offer deadlines, as seller expectations of the upcoming market are greater than in the spring, but an increase in new sellers could mean some relief from the inventory crunch,” Ratiu said. “As buyers race against the clock of rising mortgage rates, sellers who price their homes in line with today's market and stick to their plans will likely see their expectations met."

Of the potential sellers, 93% have already actively taken some of the necessary steps toward listing their home. Most commonly, 36% either researched their own home value, values in their neighborhood and started making repairs or decluttered. Just behind, 34% of surveyees researched selling requirements or searched for a new home to buy.

Both market conditions and the extended time spent at home pushed sellers into action. A 37% share said their property no longer meets their family’s needs, while 35% are motivated by potential profits to be made. Just behind, 33% want different features than what they currently live in and about 32% said they want to move closer to friends and family.

For those holding tight, 28% pointed to the lack of inventory and not being able to find another home in their price range if they sold. Behind that, 25% cited wariness of making a big change in the current economic climate and 24% didn’t know where they wanted to move.