Over A Third Of Homeowners Say They Won’t Ever Sell Their House – The Mortgage Note

More than a third of homeowners never plan to sell their house, citing the high cost of buying a new home as a major reason to stay put.

That’s according to a new survey by Redfin. Respondents were overwhelmingly down on the idea of moving, with 34% saying they would never sell. An additional 27% said they won’t sell for at least ten years, putting pain to the sluggish existing home market.

About a quarter plan to sell in the next five to ten years, 8% in three to five years, and just 7% plan to move within three.

Nearly 40% who won’t sell say they’re motivated by having paid off or nearly paid off their mortgage. But another 37% said they simply like their house.

Soaring house prices and high rates are contributing as well.

“The just-because movers—those who just want a bigger or nicer house—are staying put, mostly because it’s so expensive to buy a new house,” said Marije Kruythoff, a Redfin agent in Los Angeles.

“The people who are selling are doing so because they need to. Either they’re relocating to a different part of the country, or they’re moving due to a major life event like having a baby or taking a new job on the opposite side of the city.”

It’s a bad time for buyers hoping to score a reasonably priced existing home, but the data makes sense taking the average age of homeowners into consideration. Older homeowners were much more likely than younger Americans to say they’ll never sell– they’re dedicated to aging in place, keeping their houses off the market.

Older Americans also make up the lion’s share of homeowners currently. The Census Bureau counts nearly 80% of people over 65 years old as homeowners. Only 38.6% of people under 35 own their house.

Fannie Mae notes that should household formation and ownership rates hold at 2022 levels, the 60-plus population could account for nearly half of all homeowners in the next decade.

Home builders are optimistic that they will benefit in this landscape. Future sales expectations rose in November to a three-year high.