According to a recent study published by Bright MLS, a large number of homeowners who intend to sell next year purchased their house less than five years ago. Additionally, the study indicates that since baby boomers intend to remain in their current homes, 2025 sellers will probably be younger.
Approximately one in five (17.5%) of the 1,581 homeowners polled countrywide between November 19 and 20 indicate they intend to sell their house over the next 12 months. Almost one-third (32.2%) of those potential sellers have been in their house for fewer than five years.
According to the study, homeowners in their 30s and 40s will be the most active group of sellers in the upcoming months. Of those surveyed, 26.8% of homeowners between the ages of 30 and 39 and 28.0% of those between the ages of 40 and 49 said they want to sell within the next 12 months. Only 10.1% of older homeowners are like this.
Who & how many Americans want to sell their home next year?
“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.”
Many of the homeowners in this category made their purchases during the pandemic. Of those potential sellers in their 30s or 40s, about one-third have been in their current residence for fewer than five years.
Career and Family Changes Drive Homeowners to Sell in 2025
The poll results confirm that demographic milestones like marriage, starting a family, and changing careers are still tightly linked to purchasing and selling a property, despite the fact that the pandemic upended a lot of the housing market.
36.7% of homeowners between the ages of 30 and 39 who were asked why they intended to sell stated that it was for work-related reasons, such as moving for a new job or changing careers. Another 34.4% stated that they moved for family reasons, such as getting married, having a kid, getting divorced, or wanting to be nearer to relatives.
For homeowners in their 40s, who stated that family changes were the primary reason they intended to sell their house within the next year (43.8%), the priorities were inverted. With 25.8% of homeowners in their 40s citing work-related reasons, this was the second most popular response.
Respondents Say “Life Events” Come Before Mortgage Rates
Three out of ten (30.3%) homeowners in their 30s and 40s who intend to move now have a mortgage with an interest rate less than 4%, according to the poll. Currently, 67.4%, or more than two-thirds, have a rate below 5%.
This implies that “life happens” events take precedence over “rate lock” when it comes to the decision to sell, according to Sturtevant. While U.S. Census Bureau data shows that the ordinary homeowner has been in their home for 12 years, the survey results indicate that the pandemic may have made it possible for some homeowners to move up very rapidly.
Additionally, the desire to downsize was the most prevalent reason for moving, with only approximately 6% of homeowners 60 and older saying they planned to sell their house in 2025. Almost 25% of baby boomers who intend to move said they would prefer a smaller house.
On the opposite end of the spectrum are the overwhelming majority of baby boomers, who not only state that they have no plans to move in the upcoming year, but also that they have nothing that would motivate them to sell. Sturtevant revealed that a low mortgage rate typically does not bind these homeowners to their house. Nearly 60% of boomer respondents, according to the survey, have owned their house outright and have lived there for 20 years or more.
To read the full report, including more data, charts, and methodology, click here.
