4% Mortgage Rates and Soon-To-Be Retirees Causing Seller's Market to Shift, According to HomeLight's Top Agent Insights Summer/Fall 2021 Report

SAN FRANCISCO, July 14, 2021 /PRNewswire-PRWeb/ -- HomeLight, the real estate technology platform transforming the home buying and selling process for the top real estate agents and their clients, today published its Top Agent Insights Summer/Fall 2021 Report demonstrating how the new hybrid workweek and post-vaccine mindset are shaping the preferences of today's homebuyers and sellers. According to the report, 98% of top agents across the country agree that it continues to be a seller's market, up from 79% since when the pandemic housing boom began in summer 2020 – but new findings show the tides are turning as homebuyer priorities shift and sellers look to capitalize on the current high prices in the market.

"This is really the first time since the 1950s that homebuyers have started thinking about homes in a truly different way," said survey participant Lindsay Mann-Emerson, a top Colorado real estate agent in the HomeLight network. "I believe the pandemic and subsequent lockdowns changed the housing market, the way we view housing, the needs we have, and what 'home' means to people forever."

New data forecasts homebuyer behavioral change and indicates why inventory may be unlocked in the latter half of 2021:

Home seller FOMO is real – for almost-retirees in particular: Many agents say that high prices could encourage more sellers to list by stoking a 'carpe diem' reaction – nearly half (48%) of agents say they expect this sense of FOMO to unlock more listings in 2021. 61% of agents agree the type of seller most likely to be motivated by today's high prices are almost-retirees who are cashing out a few years earlier than planned to boost their savings.

4% mortgage rates could spark a shift in inventory: Potential home sellers know that buyers are influenced by low mortgage rates, and more sellers are feeling the pressure to list before mortgage rates rise. 52% of agents say mortgage interest rates will only need to hit between 4% and 4.5% for buyer demand to slow. 23% of agents say mortgage interest rates will need to hit 5% for there to be an impact.

Current homebuyer preferences show we still want to be homebodies, even in today's post-vaccine society: Despite people beginning to return to the office, data shows that home life reigns supreme — and buyers are willing to pay more for specific features related to it. Dedicated working space at home (cited by 60% of agents as a top priority for all buyers) and outdoor recreational space (50%) have replaced proximity to work (20%) as current must-haves for house hunters.

Comparing generational homebuyer preferences, Gen Z wants turnkey homes near the action while WFH, millennials want great school districts, and Gen X is preparing the backyard ahead of retiring:

• Gen Z wants turnkey homes near the action with a spot to WFH: The top priorities for the Gen Z buyer, those born between 1997 and 2012, are homes that are move-in ready (cited by 56% of agents as a top priority for this buyer pool), in close proximity to dining and shopping (49%), with home office capabilities (45%) – and 91% agree that spaciousness is not a Gen Z home priority.
• Millennials are putting great school districts above all else: The top priorities for the millennial homebuyer, those born between 1981 and 1996, are a great school district (65%), a suitable home office (51%), and move-in ready capabilities (46%).
• Gen X is preparing the backyard ahead of retiring: 47% of agents say move-in ready capabilities and upgraded outdoor living areas are the top priorities for Gen X, those born between 1965 and 1980.
• Each generational group prioritizes move-in ready capabilities, which may come at a cost: 56% of agents say builders are having to increase prices on in-contract buyers due to raw material shortages and cost increases.

The Peloton was worth it: the value of a home gym has increased by up to 99% since pre-COVID times: Agents estimate that the value of a home gym has risen 69% from $3,635 pre-COVID to $6,127 post-vaccine. The Pacific region saw the largest leap in the value a home gym adds to a property, from $3,939 to $7,824 – a 99% increase.

Hot tub value is on the rise, especially in the Midwest and Northeast: The amount of value an inground hot tub adds to a home has increased an estimated 71% since the start of the pandemic. Prior to COVID-19, an inground hot tub fetched an estimated $4,052. Post-vaccine, buyers will pay an estimated $6,925 for the feature. A hot tub is worth the most in the Northeast at $8,292, but the Midwest saw the biggest value increase of 106%, from $1,890 to $3,899.

HomeLight's Top Agent Insights report for Summer / Fall 2021 was fielded between May 20-June 4, 2021, through an online poll of 1,115 HomeLight Elite™ and top real estate agents across the country. Agents were selected to participate in the survey based on the same performance data HomeLight uses to identify top real estate agents for hundreds of thousands of homebuyers and sellers nationwide. The HomeLight Elite Agent™ program partners with top real estate agents based on their performance, use of client-friendly products, and client satisfaction scores.

For additional findings, download the full Top Agent Insights Summer/Fall 2021 Report.

About HomeLight

HomeLight is building the future of real estate — today. Our vision is a world where every real estate transaction is simple, certain, and satisfying for all.

The best real estate agents rely on HomeLight's platform to deliver better outcomes to homebuyers and sellers during every step of the real estate journey, whether that's enabling an all-cash offer, unlocking liquidity of their existing home to buy a new one, or creating certainty through a modern closing process. Each year, HomeLight facilitates billions of dollars of residential real estate business on its platform for thousands of agents.

Founded in 2012, HomeLight is a privately held company with offices in Scottsdale, San Francisco, New York, and Seattle, with backing from prominent investors including Zeev Ventures, Menlo Ventures, Group 11, Crosslink Capital, Bullpen Capital, Montage Ventures, Citi Ventures, Google Ventures, and others.

For additional information and images: homelight.com/press

Contact:
Lizzie Ryan
Communications Manager, HomeLight
[email protected]

Media Contact

Lizzie Ryan, HomeLight, (855) 999-7971, [email protected]

SOURCE HomeLight

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