LendingTree Survey Reveals 71% of Current Homeowners are Contemplating Selling
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.
CHARLOTTE, N.C., Jan. 22, 2014
CHARLOTTE, N.C., Jan. 22, 2014 /PRNewswire/ -- According to a recent
LendingTree survey conducted online by Research Data Technology, Inc. from
December 20-28, 2013, current and potential homeowners have a generally
optimistic outlook on the US economy and housing market. More than two-thirds
(69 percent) of respondents have a positive outlook on the housing market and
63 percent expect the US economy to continue to improve in 2014. Because of
the optimistic outlook and improving home values, 71 percent of current
homeowners said they are considering selling their home in the next 12 months,
making 2014 an active year in the housing market.
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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
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.
SOURCE LendingTree, LLC
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