In a recent survey conducted by Realtor.com, a staggering revelation emerged: Nearly 8 in 10 sellers are grappling with remorse over not capitalizing on what was dubbed the hottest housing market in decades. The culprit? Skyrocketing mortgage rates that have left many feeling trapped in their current homes.
The once historically low mortgage rates have taken a sharp turn, hitting a 20-year high, with the current average 30-year fixed mortgage rate standing at 7.44%. Although down from its peak, this rate is significantly distant from the 2% and 3% figures that fueled the pandemic-era housing boom.
As the housing market adjusts to these new dynamics, sellers find themselves at a crossroads. Hannah Jones, senior economic research analyst at Realtor.com, sheds light on the sentiment among recent sellers, stating, “A lot of recent sellers wish they had sold their homes sooner so they could have taken advantage of a hotter housing market.” According to the survey, 79% of respondents echo this sentiment, with home prices reaching their zenith in the fourth quarter of 2022.
However, sellers are not just contending with higher mortgage rates; they are also facing a cooling housing market compared to the frenzy of the pandemic era. Only 15% of sellers now expect offers above the asking price, a notable decline from previous years.
But it’s not all doom and gloom. Despite the apprehension, there is optimism on the horizon. Realtor.com predicts a slight easing of mortgage rates this year, coupled with limited home inventory, which could create favorable conditions for sellers in 2024.
President Joe Biden acknowledged the challenges, noting last year that it seemed nobody wanted to sell their home. Yet, with shifting market dynamics and evolving buyer behaviors, the landscape of the housing market remains uncertain.
In the face of these uncertainties, sellers are recalibrating their expectations. While many hope to fetch prices above the national median, ranging from $400,000 to $750,000, the path forward remains unclear.
As the housing market navigates through this period of transition, 2024 holds the promise of opportunities for those willing to take the plunge.
The original version of this piece appeared on Fortune.com.