According to the latest National Association of REALTORS® quarterly report, the percentage of current home owners who are optimistic about selling their property rose to 46 percent, a nice increase from 37 percent in the first quart of 2019. Why are homeowners warming up to the idea of selling? One reason is that home price appreciation is beginning to soften.
Lawrence Yun, chief economist at NAR, explains, “With home-price appreciation slowing, home sellers understand that the days of large price gains from holding an extra year are over.” While the median national home sale price is still 3.6 percent higher than this time last year, the rate of home appreciation has slowed from 5.3 percent gains in 2018. At the same time as home appreciation is softening, buyers are gaining confidence. 65 percent of buyers are optimistic about purchasing a property, and 38 percent strongly believe that now is the time to buy.
The economy is certainly a factor in increased homebuyer confidence. According to the NAR report, 55 percent of respondents believe that the economy is improving, which translates into a healthy real estate market. According to Yun, “Lower mortgage rates, along with job and wage growth, will lead to an increase in sales and thereby contribute positively to economic growth in the upcoming quarters.”