
A recent report from Redfin reveals that 34% of homeowners in the United States prefer to hold onto their properties indefinitely, with this sentiment particularly strong among the baby boomer and Generation X demographics.
Homeowner Sentiment and Market Challenges
As we step into 2025, the effects of rising home prices and high mortgage rates are clearly at play in the housing market.
Even with an increase in the number of homes available for sale, many homeowners are choosing to stay put for the foreseeable future, prioritizing stability over relocation.
This information comes from a study released by the Seattle-based brokerage Redfin in January 2025.
The data is based on an Ipsos survey conducted in September 2024, which included insights from 1,802 participants ranging from ages 18 to 65.
The results are telling: while 34% of homeowners indicate they’re unlikely to sell their homes, 27% are not planning to make a move for at least ten years.
Interestingly, 24% foresee a sale within the next five to ten years.
In contrast, just 8% are looking to sell within the next three to five years, and only 7% expect to sell in the next three years.
Reasons for Retention
A significant portion of those who wish to stay is from older generations.
Among baby boomers aged 60 to 79, a notable 43% prefer to keep their homes.
Generation X follows closely with 34%, while millennials and Generation Z together account for 28%.
Redfin’s analysis points out that potential sellers are primarily considering a move only when necessary, often triggered by life changes or major events.
Simply wanting a larger or nicer home does not seem compelling enough for many.
Real estate agent Marije Kruythoff from Redfin in Los Angeles notes that high costs associated with buying a new home are a major deterrent for many homeowners.
Job relocations and family expansions are typically the key motivators for those contemplating selling.
According to the data, homeowners have various reasons for choosing to remain in their current properties.
A significant factor is their home’s value and the current market climate.
For instance, 39% of respondents stated they wouldn’t sell because they are close to paying off their mortgages—this trend is especially prevalent among older homeowners with long tenures.
Additionally, 37% expressed satisfaction with their existing homes, while 30% aim to avoid inflated market prices.
An impressive 18% indicated they want to keep their favorable mortgage rates, with 85% of homeowners holding mortgages below 6%.
Market Dynamics and Future Trends
This trend of retaining homeownership provides insight into why the housing inventory hasn’t rebounded to pre-pandemic levels.
Redfin reported that only 2.5% of existing homes exchanged hands during the first eight months of 2024, marking the lowest turnover rate in decades.
This is a sharp decline compared to the pandemic-era sales boom of 2021, when 4% of homes were sold.
On the brighter side for potential buyers, Redfin noted a 12% increase in active listings year-over-year in the four weeks leading up to December 22, 2024.
Still, it’s important to recognize that existing home sales continue to face significant challenges before reaching the heights seen prior to the pandemic.
Current mortgage rates are hovering above 7%, and the average home price has risen by 5.4% annually as of November.
As the housing market adjusts to the policies anticipated under the new Trump administration, both buyers and real estate professionals need to stay alert to trends in inventory and availability of existing listings.
The dynamics of the market are shifting, and understanding these changes will be crucial for navigating the landscape ahead.
Source: Housingwire