Zillow's recent report suggests that more homeowners are considering selling their homes. Here's a simpler breakdown:
- Mortgage Rates:
Mortgage rates are not increasing as they were, and this change is encouraging more homeowners to think about selling.
- Selling Consideration:
In a survey conducted by Zillow in the last quarter of 2023, 21% of homeowners said they might sell their homes in the next three years. This is an increase from 15% the previous year.
- Interest Rate Impact:
The survey found that the decision to sell was not significantly affected by whether the homeowner's mortgage interest rate was above or below 5%.
- Inventory Growth:
More homeowners listing their houses for sale is slowly helping to increase the available housing inventory. According to Zillow, inventory levels are now 36% below pre-pandemic averages, which is closer to a balanced market than the 46% deficit in May 2023.
- Buyer Benefits:
The recent decrease in rates has also benefited buyers. The monthly mortgage payment on a typical home is now $1,790, which is $143 less than in October. This means that for the first time since last April, a new mortgage with a 20% down payment takes up less than 33% of the median household income.
In summary,
Both sellers and buyers are finding advantages in the current market conditions. However, the dynamic nature of mortgage rates will continue to shape housing affordability in 2024, particularly for first-time buyers.
