Survey: Should I Sell My House Now? 74% Are Hesitant
With mortgage rates rising, our survey shows homeowners may have other investment plans
It’s no secret that mortgage rates are skyrocketing. After jumping from about 3% to over 5% this past quarter of 2022, the average home price now sits at approximately $818,000, a record-breaking lifetime cost. Mischa Fisher, chief economist at Angi, deems 2022 one of the most expensive times to buy a house.
Considering inflation fears and the trend of mortgage rate spikes, are homeowners feeling like it's time to cash in?
Angi surveyed over 600 homeowners in the U.S. to see how they feel about the current housing market and revealed that most are hesitant to sell. Instead, many are considering home improvement.
Key Findings
42% of homeowners would rather invest in remodeling their home than selling it right now.
Only 16% of people would still consider listing their home at this time.
Nearly 50% of Americans would consider selling their home for a job offer.
43% of people want to downsize for their next home purchase.
Read on to learn more of what our survey revealed and for helpful tips on when to sell a home.
Not for Sale: Many Americans Would Rather Remodel Their Home
When asked for thoughts on listing a home during the current state of mortgage rates, results showed that 74% of homeowners would not sell right now. While a few are unsure or have no plans as of yet, the majority—42% of the group—said they’d rather invest in remodeling.
This isn’t surprising news. According to a 2021 Harvard report, home improvement spending grew over 3% that year to nearly $421 million. The study showed a surge in DIY renovations for living space modifications during the COVID-19 pandemic.
It looks like these U.S. homeowners have the right idea. Several improvement projects can help increase a home’s value, such as garage door replacements, which offer homeowners a 94% average return on investment.
But not everyone is against the idea of selling. Despite the increasing mortgage rates, 16% of homeowners surveyed said they’d still consider listing their home at this time.
45% of People Would Sell Their House for a Job Offer
When asked about reasons they’d sell their home, almost half of homeowners said they’d be willing to relocate for a job. Career opportunities, or finances in general, seem to be the driving factor. Over a fifth of Americans said they’d sell if they couldn’t afford the mortgage, and a third would do it to profit from their home value.
Based on Angi’s housing market research, this makes sense. After analyzing cost and wage data, Fisher explained that the number of years someone must work to pay off their new home purchase grew from about 11 years to over 15, nearly a 50% increase in the last 12 months.
So, does a larger salary make Americans more comfortable about purchasing an upgrade? Not quite.
Go Small or Go Home, Literally
Surprisingly, downsizing a home is top of mind for 43% of survey respondents. It was the second most commonly cited reason U.S. homeowners said they’d sell. Whether they’re nearing retirement or starting a new career, buying a large home doesn’t seem to be a priority for many Americans.
The tiny house movement—an architectural and social movement that promotes minimalism and sustainable living—may have an influence. Tiny home ideas grew in popularity amid the COVID-19 pandemic, ranging from highly sought-after rentals on Airbnb to tiny house tours trending on TikTok.
A 2020 survey by Fidelity National Financial subsidiary IPX1031 supports this, finding that over half of the 2,006 Americans surveyed said they would live in a tiny home. Of those who aren’t homeowners, 86% said they’d consider buying one as their first home.
Affordability, efficiency, and eco-friendliness were among the most appealing factors to those survey respondents, all of which are benefits that an average-sized home may not offer.
Sell Your Home Now or Wait? Here’s How to Decide
While the current housing market has many homeowners on the fence, it’s not the only determining factor for listing a home. The “right” time to sell a house also depends on the individual. Let’s walk through a few questions to figure out what decision is best for you.
Is It a Second Home?
If you own a second home, such as a rental property, selling it may work in your favor. You can earn a profit in exchange for the day-to-day hassle of upkeep and managing tenants. Since cleaning and prepping to show a second property can be a time-consuming process, hiring home stagers may come in handy.
Are You Comfortable in Your Current Home?
Whether you need to upsize for a growing family or downsize as an empty nester, a new home may be the best option for your household needs.
Have You Built Enough Home Equity?
If what you owe on the mortgage is more than the current market value of your home, it’s probably safer to wait on selling until you’ve built more equity. Factoring in closing fees, the cost to hire movers, and more, you’ll want to wait until you can make a significant profit.
Are You Planning to Remodel?
Many homeowners prefer to wait on selling and instead remodel to help increase their home value. If this is your goal, make sure you have a solid idea of what renovations you plan to DIY and which to leave to a professional. Another survey we ran revealed that 20% of people had no idea about permits needed for common home renovations.
Despite the rapid increase of mortgage rates, Fisher explains that housing remains affordable in comparison to the 1980s. If, after careful consideration, you decide that selling your home is the best option, the next important step is finding a top-rated real estate agent in your area to help list it.
Methodology
Angi’s findings were based on results from an anonymous online survey of 666 homeowners in the United States. The survey was conducted by YouGov Direct on May 6, 2022, between 2 p.m. and 6 p.m. EDT.