Nearly 25% of Homeowners Plan To Sell In The Next Three Years; 10 Cities Buyers Should Keep an Eye On

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In an expected response to rate increases from the Fed, the housing market has constricted substantially. A dwindling inventory of homes is also a major contributing factor in slowing the market.

Realtor.com‘s recent report on the July housing market showed 45,000 fewer homes for sale in July compared to last year. While the housing market is struggling to meet inventory needs, determined buyers can still find cities where inventory has actually increased year-over-year.

Factors Behind Selling

Zillow‘s June 2023 Quarterly Survey of Homeowner Intentions and Preferences (QSHIP) suggested that home inventory could see an uptick relatively soon. 

Approximately 23% of survey respondents reported they were considering selling their homes within the next three years. That’s up from 15% in the second quarter of last year. Within the subset of people considering selling their homes, 40% are planning to sell within the next year. 

A few motivations stick out as people think of selling their homes. Survey respondents cited multiple main reasons behind selling: 

• Growing a family (45%).
• Wanting an upgraded home (66%).
• Expecting a better sales price now compared to the future (50%).

For people who don’t want to sell, there’s a common sentiment — they love their homes (79%).

Cities Outpacing Inventory Struggles

As of June 2023, Zillow reported for-sale inventory with the largest year-over-year increases in the following cities: 

1. New Orleans (41.9%).
2. San Antonio (22.6%).
3. Jacksonville (10.5%).
4. Dallas (9.7%).
5. Austin (8.5%).
6. Miami (7.9%).
7. Houston (6.8%).
8. Oklahoma City (4.9%).
9. Memphis (4.0%).
10. Nashville (2.2%).

Potential buyers could have an easier time finding and competing for homes in these areas. Four of the top 10 slots are occupied by cities in Texas where places like San Antonio have experienced a 22.6% increase in home inventory over the past year.

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