More Confidence, Less Fear Among Home Sellers; Potential for Increased Inventory in 2013

As the housing market winds down this year, home sellers’ concerns about the economy are beginning to ease slightly and responses to Redfin’s Real-Time Seller Survey point toward increasing confidence for the 2013 selling season.

Last quarter we saw reluctant sellers with low opinions of the current market, but high expectations for the future. Here’s what sellers told us this quarter:

  • 40% cited the economy as a major concern with selling, down from 49% in the third quarter;
  • 83% believe that they would get a higher price for their home by waiting one to two years, up from 80% in the third quarter, suggesting increasing confidence about the housing market’s future;
  • 43% of respondents are considering renting out their home rather than selling it, down from 46% last quarter;
  • 31% intend to price their home higher than nearby comparable sales, down just one percentage point from last quarter;
  • 15% believe it is a good time to sell, up from 13% last quarter, while 58% believe it is a good time to buy, down from 61% last quarter. Taken together, these indicate that sellers sense a slight market shift in their favor; and
  • 37% would choose an all-cash offer over higher offers with conventional or FHA financing, up from 35% last quarter. Despite the perceived market strength, sellers are still wary of appraisals keeping up.

For the full report including data tables and charts, visit the Real-Time Market Sentiment in Redfin’s Research Center.