Low refinance rates not to blame for gun-shy sellers
Many have speculated that low refinance rates have been preventing homeowners from selling, but this factor is less consequential than expected, according to ValueInsured. Only about 18% of consumers interested in selling their home claim they haven't because of their current low mortgage payment.
With record-high home prices fueled by tight inventory and high demand, it's a seller's market, but many would-be sellers are hesitant to sell because of the price they'd have to end up paying for a new home.
About 79% of homeowners reported that it was a good time to sell a home in the third quarter, and two-thirds of homeowners stated they will sell "in the near future," up eight percentage points from the previous quarter.
"Homeowners in many cases are eager to sell but don't want to become buyers," said Joe Melendez, CEO of ValueInsured, in a press release.
"These homeowners have experienced a lot of home value volatility and see more uncertainties looming — tax reform, for example. By hesitating, these homeowners are actually controlling the market on both sides. Reassuring these individuals is the key to unlocking inventory," he continued.
Among homeowners interested in selling to upgrade or downsize, 79% said they were concerned with timing the real estate market and 63% claimed it's a good time to sell but not to buy because of home prices. About 61% are currently waiting until prices to buy become more reasonable before moving.
Currently, 48% of the nation's top 50 housing markets are considered overvalued, according to CoreLogic.