SFR Awaits With More Home Sellers Poised to Enter Market This Winter

An anticipated increase in new home sellers this winter could mean some relief from the inventory crunch. 

Buyers should be ready for high asking prices and offer deadlines as seller expectations of the upcoming market are greater than in the spring, according to a new Realtor.com survey.

After sitting on the sidelines as low mortgage rates fueled homebuyer demand and listing price growth throughout the pandemic, the majority of prospective sellers, or 65%, are eager to enter the housing market within the next six months, the survey said.

Although sellers’ expectations for bidding wars and fast-paced sales have only grown since spring, the potential uptick in new listings offers holiday hope to buyers challenged by the shortage of for-sale homes.

Additionally, as more homes have entered the for-sale market, price growth has moderated from the spring’s double-digit levels to a more approachable 8% to 9% range, Realtor.com said in a release.

The rise in remote work is also a key driver this winter: 23% of sellers are looking for a home office and 19% no longer need to live near their workplace, up from 6% in March.

New Inventory Could Go to Single-Family Rental Market

Kori Covrigaru, co-founder and CEO of Denver-based PlanOmatic, tells GlobeSt, “This influx of new home inventory could potentially create a tremendous opportunity for single-family rental investors to purchase some of these properties. 

“However, these homes would need to fit within SFR investors’ specific buy box which tends to include homes priced between $250,000 to $500,000 and located in markets where SFR investors are currently active.”

“We are in a period right now where there is a tremendous amount of uncertainty around inventory, home prices and rental prices. I see an influx in home inventory helping to balance out this uncertainty and provide some guidance as to where we are headed and some stability for the economy and the housing market as a whole.”