Survey Finds Homeownership Remains a Top Priority, Despite Shifting Market Conditions

Staff Report

Wednesday, January 25th, 2023

Today RE/MAX, LLC released new survey findings highlighting consumer sentiment and intentions for homebuying and selling amid the changing housing climate of the last year. The findings reveal that homeownership remains a top priority for consumers, and many have adjusted their previous plans in order to take advantage of ideal conditions or in anticipation of a shifting market.

"We've seen historic competition in housing over the last two years. As the market begins to rebalance, homebuyers and sellers remain focused on the goal of homeownership despite the ongoing fluctuations," shares Nick Bailey, President and CEO of RE/MAX, LLC. "The findings of this survey underscore Americans' desire to own a home and highlights the important role real estate agents play in guiding them through the often-complex buying and selling process."

Key survey findings include:

Home Buyers Are STILL Buying
Americans were not dissuaded by the real estate headlines and rising interest rates. Buyers remained intent on purchasing a home despite the process becoming more challenging – many were willing to spend more and/or expedite their timelines if it helped them score a new home.

Sixty-eight percent of respondents plan to buy a house or condo in the next few years.
Fifty-three percent have expedited their homebuying plans as a result of current market conditions.
Almost half of respondents would be willing to spend over the asking price for a property:
If they've had one or more rejected offers previously – 49%
That meets 75% or more of their wish list – 45%
Homeowners Are Also Ready to Make a Move
A shortage of inventory, historically low rates, and strong demand helped drive a sellers' market during the pandemic. As rates continue to rise and prices decline, sellers who may have previously been hesitant to sell have quickly changed their minds. Additionally, long-term impacts of the pandemic, like continued remote work, mean there are more opportunities for homeowners to choose where they want to live, without being limited by their job's location.

Fifty-three percent of respondents who planned to sell their house in the next few years, reported that market conditions motivated them to sell their property sooner than they initially planned.
The top three requirements for respondents moving to a new location include:
Moving closer to family – 46%
To a location with better weather – 44%
Closer to their or their partner's job – 40%
Real Estate Agents Are a Critical Resource
As competition remains strong and rates rise, guidance from real estate professionals is even more critical.

Fifty-nine percent plan to use a real estate agent when they buy or sell a house
Forty-seven percent of respondents will visit a real estate website or directory for trusted information and recommendations for Realtors®.
The latest RE/MAX National Housing Report for October 2022 revealed a vastly different housing market from one year ago, with 30.7% fewer closings, 36.8% more homes for sale, and the average home taking nearly a week longer to sell, at 35 days on market. As a result, the Median Sales Price was pushed down 0.3% to $399,000 from September's $400,000 – the third straight month of decline. Across the report's 53 metro markets, all 10 months of 2022 thus far have posted lower home sales compared to 2021. October was the sixth consecutive month with more for-sale signs than the same month last year.

Bailey adds, "Housing is still a strong investment for Americans, and we expect to see sustained demand next year. However, it will be more important than ever for buyers and sellers to work with an expert to help them navigate the ever-changing market conditions."