The hot US housing market could soon turn into turbulence as an unprecedented number of Americans look to put their homes up for sale at a time when housing affordability is at an all-time low.
According to Google Analytics provided by luxury real estate platform RubyHome, searches for “sell my house” rose 147% in July 2022. That’s the highest level of people looking to sell their homes in US internet history, as rising mortgages, skyrocketing home prices, and a looming recession cools demand for houses.
In addition, the data also reveals that searches for “sell my house for cash” are also at an all-time high, suggesting trouble ahead for the US home market.
“These findings highlight the turbulent state of the housing market,” a RubyHome spokesperson said in an email to the International Business Times. “Especially since the pandemic began, we have seen house prices skyrocket, which has a negative effect, and eventually became unaffordable and more challenging to sell in the long run. This can then create a somewhat stuck situation for both buyers and sellers. “
If this trend continues, RubyHome believes a market correction is likely to happen soon, despite persistent inflation, making houses an attractive investment.
“Houses can be one of the most valuable assets to own and selling them can bring great returns, especially with the rate of property inflation rising rapidly,” the RubyHome spokesperson added. “However, sellers may be forced to lower the cost of making a sale with the disparity between the rising cost of living and ever-increasing income.”
Marcus Larrea of Palm Paradise Real Estate in Fort Myers, Florida, provides further evidence that many Americans are eager to sell their homes.
“People Googled ‘sell my house’ in July at such high prices because market prices peaked around April or May,” he told IBT in an email. “People who are considering selling their homes are starting to realize that they may be missing out top and trying to prepare their homes to hit the market quickly.”
Like RubyHome, Palm Paradise Real Estate is seeing an increase in “sell my house” searches.
“My real estate team noticed a sharp increase in unique visits to our website, and visitors were spending more time on the site than in previous months,” adds Larrea. “Obviously, people are renewing their interest in selling their homes. That means more inventory will come on the market, which we’ve already seen. This will help slow the rising prices.”
But he believes that the sellers have already missed the market peak.
“My team is seeing price declines on listings because sellers set their asking price based on the height of the market, but the high mark happened between April and May. So as homes are on the market longer, sellers realize they have to lower their price. .”
But it is a positive development, according to Larrea. It can help the market to clear.
“Homeowners’ renewed interest in selling their homes will bring more inventory to the market,” he adds. “This is a good thing! I know it sounds counterintuitive for a real estate agent who makes money on commissions, but at the end of the day, an overpriced market drives buyers away. A stable market with reasonable prices is not only good for home buyers but also the real estate industry as a whole.”
Jack Pinard, COO of Summit RE Group, LLC, a New England residential real estate remodeling company, is not surprised by the increase in the number of people looking to sell their homes.
“This recent search analysis of ‘sell my house’ and ‘sell my house for cash’ frankly comes as no surprise to most real estate agents who constantly work in the home ownership space,” he told IBT in an email.
But he believes it’s part of a troubling trend, as some fear losing their home, credit rating and equity.
“As a result, thousands upon thousands of owners start where most people start these days – on a Google search,” he added. “These somewhat broad searches will likely give them far too many results to process. Many will refine their search to ‘sell my house fast Massachusetts’ and other more localized terms.”