Published by REALTOR.com | December 11, 2024
Younger Americans who bought homes during the COVID-19 pandemic could lead the way in sales next year, a survey has found
Younger Americans who bought homes during the COVID-19 pandemic could account for a surprisingly large share of home sellers in the coming year, as boomers who have owned their homes for decades mostly refuse to sell, a new survey finds.
Among current homeowners, nearly 1 in 5 say they plan to sell their home next year, according to the results released on Wednesday by Bright MLS. Although people who purchased their home in the past five years accounted for just 24% of all homeowners, they made up 32% of those who plan to sell their home in 2025.
Homeowners in their 30s and 40s will be the most active group of sellers in 2025, with 27% of homeowners aged 30 to 39 and 28% of homeowners aged 40 to 49 indicating they expect to sell in the coming year. By comparison, just 10% of older homeowners plan to sell.
“Record-low mortgage rates during the pandemic were a huge incentive for individuals and families to buy a home. Many of these buyers also have been able to quickly accumulate significant equity in their homes as home prices have escalated,” says Lisa Sturtevant, Bright MLS chief economist.
In November, national median list prices were up 37% from the same month five years ago, according to Realtor.com® economic research data.
“This wealth gain has created financial security for this group of homeowners, and is also allowing them to be move-up buyers even in today’s relatively high interest rate environment,” says Sturtevant.
The Realtor.com 2025 Housing Forecast notes that the market is shifting from a strong seller’s market to one in which buyers and sellers have more balanced market power.
“As a result, sellers will need to price carefully to attract buyers, especially in markets where affordability is an issue,” says Realtor.com Chief Economist Danielle Hale.
Hale adds that while there’s potential for a favorable market for sellers, “the overall landscape will depend largely on how economic conditions, interest rates, and housing supply evolve over the first few months of the year.”
