Home sellers are becoming increasingly worried about rising interest rates and their impact on home-buying demand, according to a new Redfin survey of nearly 1,500 home owners across the country.
Forty-seven percent of survey respondents said they are concerned that rising rates could lower demand before they get their homes on the market. That’s more than double the percentage from the previous quarter.
“Of course home sellers are worried about interest rates, but the reality is that many buyers believe that rates will continue to go up,” said Eric Tan, a Redfin Los Angeles real estate professional. “They know if they don’t move now, they might be kicking themselves all over again in three months.”
Eighty-five percent of respondents said they believe home prices will rise in their areas within the next year. Seventeen percent said they expect the rise to be “a lot.”
“Results from our seller survey point to growing confidence in the U.S. economy and recognition that broad economic gains could erode sellers’ advantages in the housing market as mortgage rates rise,” said Ellen Haberle, a Redfin economist.
Home owners identified a “life event” as their top reason for selling, followed by “rising prices,” according to the survey.