LendingTree Survey Reveals 71% of Current Homeowners are Contemplating Selling in 2014
A recent survey shows that current and potential homeowners have a positive outlook on the US housing market and economy for 2014, despite the anticipation of higher mortgage rates.
Rising Rates and Future Home Sales
The survey shows that 74 percent of current and potential homeowners expect mortgage rates to be higher 12 months from now. Most (60 percent) anticipate a moderate uptick in mortgage rates while 14 percent expect rates to be considerably higher 12 months from now.
Despite the expected increase in mortgage rates, current and potential homeowners don’t expect to shy away from the housing market. Of the 71 percent of homeowners who are thinking about selling in 2014, 24 percent plan to sell their home regardless of any home value increase or decrease while 47 percent say they plan to sell if they experience an increase in their home value. Only 15 percent of homeowners say they are not contemplating a sale in 2014, and 15 percent are undecided.
Potential home sales are driven largely by younger homeowners, with 90% of homeowners under 30 considering selling their home in 2014 and 78 percent of homeowners aged 30-39 contemplating selling their home in the next 12 months.
"As home values continue to improve across the country, sellers who have been sidelined due to low property values will start to take action in the market,” said Doug Lebda, founder and CEO of LendingTree. “Although it’s unlikely that 70% of current homeowners will sell their home this year, it's a positive sign for the housing market that more homeowners are considering the possibility of moving. In the next 12 months, new construction and the overall US jobs market will be key factors for continuing a housing market recovery."
Rising Home Prices – Perception vs. Reality
According to the survey, 72 percent of respondents stated home prices in their area increased during the past 12 months, while 20 percent believe home values declined and 8 percent thought home values remained flat. To compare current and potential homeowner perceptions with reality, S&P/Case-Shiller Home Price Indices data collected through October 2013 showed that the 10-City and 20-City Composites posted year-over-year gains of 13.6 percent.
In the areas where home values were believed to have improved, prices increased an average of 10.2 percent, according to the survey. This figure closely matches the National Association of Realtor’s reported US home price increase of 12 percent for 2013. For those that believe home values declined in their areas, 9.2 percent is the average perceptive drop in home prices.
The perception that home prices increased is not equally distributed across the US., according the survey data. Seventy-nine percent of current and potential homeowners in the West believe home prices are higher today than one year ago, compared to 67 percent of individuals in the Northeast with the same view.
About the Survey
Survey results are based on 609 individuals who currently own their home or are considering purchasing a home within the next 12 months. These homeowners and potential homebuyers participated in an online survey conducted by Research Data Technology, Inc., on behalf of The LendingTree, from December 20, 2013 through December 28, 2013. The 609 respondents represent a targeted sample of homeowners and potential homebuyers that were selected from a consumer panel of individuals in the US with access to the Internet. The margin of error in this survey is ±4%. This means that in 19 cases out of 20, survey results based on 609 respondents will differ by no more than 4.0 percentage points in either direction from what would have been obtained by seeking the opinions of all eligible individuals who are online.
About LendingTree, LLC
LendingTree, LLC is the nation’s leading online source for competitive home loan offers, empowering consumers during the mortgage, refinance or auto loan process. LendingTree provides an online marketplace which connects consumers with multiple lenders that compete for their business, as well as an array of online tools and information to help consumers find the best loan. Since inception, LendingTree has facilitated more than 30 million loan requests and $214 billion in closed loan transactions. LendingTree provides access to lenders offering mortgages and refinance loans, home equity loans/lines of credit, and more. LendingTree, LLC is a subsidiary of Tree.com, Inc. (NASDAQ: TREE). For more information go to www.lendingtree.com, dial 800-555-TREE, join our Facebook page and/or follow us on Twitter @LendingTree.