2022 Seller-Buyers: Most Important Features? Pets and Large Backyards

As a home seller in South Florida, you may be looking to find out what features are most important to potential buyers in 2022. Pets and large backyards were two of the top features mentioned in a recent study. Let's take a closer look at what this means for you.

Real estate markets for spring 2022 are evolving alongside revolving macrotrends. List prices have reached all-time highs as a result of the persistent supply and demand imbalance. Mortgage rates have increased by more than 200 basis points over the last four months as a result of growing inflation, altered monetary policy, and other factors. Many purchasers are being priced out of the market as a result. In the meantime, as the number of new listings rises in comparison to a year ago, house sellers, who have been solidly in the driver's seat for the past year and a half, are facing increased competition from other sellers.

Importantly, a sizeable portion of sellers in 2022 will also be attempting to purchase their next house, adding complexity to an already difficult undertaking. Although sellers will be able to cash out equity that will set records when they close on their property, they will also have to deal with rising home prices and interest rates. Others homeowners may find a suitable answer in moving away from a high-cost metropolis into a more reasonable mid-sized region, while some may be confronted with the possibility of being locked-in by a low mortgage rate.

What are Sellers Looking for in their Next Homes?

In 2022, affordability will be a key factor for buyers, including homeowners who are selling their present residence and searching for a new one. We questioned seller-buyers who had purchased at least one home about the amenities they would prioritize having in their upcoming residences.

Pet space was listed as the most important element, which is surprising and presumably reflects preferences that have changed as a result of the pandemic. While the number of pet owners has increased over the past ten years, the restrictions on quarantines and social isolation expedited the trend, which is now reflected in what individuals value when looking for a home. Second on the list of priorities for seller-buyers, large backyards are another feature that has gained significance over the past few years. A few characteristics that have been at the top of purchasers' wish list for a while now—updated kitchens, outdoor living spaces, quiet settings, and garages—tied for third place. These characteristics demonstrate the increased importance that Americans place on a home's practicality.

The choices for locations have changed as a result of the hunt for affordability, amenities, and features. After ten years of urban renewal, households are seeking new qualities. 37 percent of seller-buyers are exploring outside of their immediate neighborhood for a property, compared to 17 percent who are still looking in the same area. In addition, 23% of these homeowners are looking in surrounding cities and towns, and 13% are looking in different regions of the same state when looking for their next house. 9 percent of seller-buyers are looking for their next home in locations outside of their state, mirroring migration patterns from other sources.

Who are this Spring’s Seller-Buyers?

Seventy-two percent of homeowners who intend to sell their homes this year also intend to purchase their next house. Millennials make up the majority of seller-buyers in the markets this year (47 percent ). Gen X (15%) and Baby Boomers (25%) are the next two largest groups, followed by Gen Z (25%) seller-buyers (12 percent ).

The South and West of the country account for 69 percent of all seller-buyers, mirroring patterns of activity seen across the board. 15 percent of seller-buyers resided in the Northeast and 15 percent in the Midwest.

Similar to buyer-sellers, most seller-buyers are located in urban areas, with 42% residing in an urban area and 42% in a suburban area. Only 15% of sellers with open listings reside in a rural region.

What are Sellers’ Main Issues this Spring?

We questioned homeowners about how they want to manage the transition because rising property prices and mortgage rates are making it more difficult financially for many sellers who want to apply the profits toward their new home. 46 percent of them intend to first relocate out of their existing residence before listing it for sale. Given the limited inventory conditions that have left many prosperous sellers in a limbo after closing their homes and being unable to find a replacement, this option appears to offer the most flexibility for homeowners. In addition, 44% of homeowners intend to buy and sell at the same time. Last but not least, one in ten homeowners intends to sell their home and relocate while hunting for a successor.

Affordability is a key concern for this year's homeowners planning to sell and buy due to inflation driving consumer prices up by 8.5 percent compared to last year, home prices rising at a rate of 14 percent above year-ago levels, and mortgage rates driving the monthly payment up by 50 percent from 2021 levels. When asked what price they were aiming for when selling their present house, 49 percent of Americans said $500,000 or less, with 15% saying $200,000 or less. For many buyers who experienced extreme frustration with the housing market last year due to rising prices, the distribution of sale prices is positive. Markets would be happy to hear that there are more reasonably priced homes for sale. It's interesting to see that 32% of homeowners intend to sell their properties.

In keeping with the trend of affordability, this year's sellers are looking to purchase their next residences at more affordable price ranges, with 53% of them hoping to find a home for under $500,000 and 17% hoping to find a home for under $200,000. 29 percent of sellers are looking for trade-up properties (in the $500,000–$1,000,000 range), compared to 32 percent who plan to sell in the same market.

A follow-up inquiry in which we asked homeowners intending to sell and buy what the new home had "less of" than their present home further highlighted the need for additional affordable housing. Outdoor features, size, number of bedrooms, and land were at the top of the list, followed by a lower asking price and less additions.

Seller-buyers are also searching for more of some characteristics in their next homes. The fact that they want larger homes on larger lots at the top shows that today's buyers want more from their homes, especially as their needs change with each passing stage of life. Seller-buyers want more outside elements in their next home in addition to more room. Unsurprisingly, a substantial majority want homes with additional bedrooms and bathrooms.

How Are Market Conditions for Sellers This Spring?

A sizable portion of homeowners preparing to sell this spring anticipate being able to set the terms of the deal since they are aware that the market is still in their favor. A third or more aim to ask for more than they believe their home is worth, and 27% want a rapid closing. Nearly a quarter do not want to accept bids that are less than their asking price, and 24% do not want to pay for any house repairs or upgrades.

Seller-buyers are anxious about managing the financial details of both transactions (36%) as well as home prices (32%), rising mortgage rates, and other financial pressures, which is a hint that financial pressures and rapidly shifting interest rates are having an impact on the housing markets (24 percent ). The complexities of moving while departing one property and taking possession of another worry roughly a third of homeowners who are planning a sale and purchase. Other worries include the final selling price of the home (27%) locating a home within their price range (26%) financial changes (25%) and working with the best agent (23 percent ).

Seller-buyers are thinking about a number of ways to make their transactions easier when navigating the swift currents in today's real estate marketplaces. This group of homeowners prioritizes finding a single agent to handle both transactions (37 percent ). Work with an online business that offers immediate cash as your second-best choice. The third choice is to use a firm to assist you acquire a house; they'll let you move there and pay a charge or rent until you sell.

If you’re looking for a place to call home in 2022, or are curious about what features will be most important to potential sellers and buyers, look no further. The data suggests that pet-friendly space will top the list, followed closely by large backyards and updated kitchens. Outdoor living areas and quiet locations are also high on the list, as is garage space. Contact me if you want to know more about how these trends could impact Miami real estate – I’d be happy to chat!

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