Baby boomers plan to stay put, while younger homeowners who have seen their equity rise quickly are ready to move on, Bright MLS nationwide consumer survey finds
NORTH BETHESDA, Md., Dec. 11, 2024 /PRNewswire/ — Many homeowners planning to sell next year bought their home less than five years ago, according to research released today by Bright MLS. The research also shows that 2025’s sellers will likely skew younger as baby boomers plan to continue to stay put.
Among 1,581 homeowners surveyed nationwide between Nov. 19 and 20, about one in five (17.5%) say they plan to sell their home in the next year. Of those prospective sellers, nearly one third (32.2%) have lived in their home less than five years.
Homeowners in their 30s and 40s are going to be the most active group of sellers in the months ahead, according to the survey, with 26.8% of homeowners between the ages 30 and 39 and 28.0% of homeowners age 40 to 49 indicating they expect to sell in the next 12 months. This compares to just 10.1% of older homeowners.
“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,” said Lisa Sturtevant, Bright MLS Chief Economist. “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.”
Career and family changes drive homeowners to sell in 2025
Although the pandemic upended much about the housing market, the survey findings reinforce that demographic milestones, such as marriage, starting a family and career moves, remain closely tied to buying and selling a home.
When asked why they planned to sell, 36.7% of homeowners between the ages of 30 and 39 said it was for job reasons, such as a career change or to move for a new job. Another 34.4% said it was family reasons prompting them to move, including marriage, birth of a child, divorce and being closer to family.
The priorities were reversed for homeowners in the 40s who said that family changes were the main reason they were planning to sell their home in the next year (43.8%). Job-related reasons were the second most common response, given by 25.8% of 40-something homeowners.
“Life” trumps mortgage rates
The survey found three out of 10 (30.3%) of homeowners in their 30s and 40s who plan to move currently have a mortgage with an interest rate below 4%. More than two-thirds (67.4%) currently have a rate below 5%.
According to Sturtevant, this suggests that “life happens” events trump “rate lock” when it comes to the decision to sell. Although the median length of time homeowners live in a home has increased to 12 years according to data from the U.S. Census Bureau, the survey findings suggest that the pandemic may have paved the way for some homeowners to make a move-up purchase relatively quickly.
Boomers are content to stay put
Only about 6% of homeowners aged 60 and older said they were planning to sell their home in 2025 with the desire to downsize cited as the most common reason for moving. Nearly a quarter of boomers who are planning to move stated they want a smaller home.
At the other end of the spectrum is the vast majority of boomers, who not only say they are not planning to move next year, but there isn’t anything that could make them want to sell. Sturtevant noted that these homeowners are generally not locked into their home by a low mortgage rate. Based on the survey, nearly 60% of boomer respondents have lived in their home 20 years or more and own it outright.
To view the full report, including methodology, please visit: brightmls.com/research.
About Bright MLS
Bright MLS was founded in 2016 as a collaboration between 43 visionary associations and two of the nation’s most prominent MLSs to transform what an MLS is and what it does, so real estate pros and the people they serve can thrive today and into our data-driven future through an open, clear and competitive housing market for all. Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia. Bright MLS’s innovative tool library—both created and curated—provides services and award-winning support to well over 100K real estate professionals, enabling their delivery on the promise of home to over half a million home buyers and sellers monthly. Learn more at BrightMLS.com.
SOURCE Bright MLS
