Pandemic-era homebuyers likely major sellers amid changing housing market dynamics

Younger Americans who purchased homes during the COVID-19 pandemic are expected to be significant contributors to the housing market as sellers in 2025. This trend emerges as many long-time homeowners, particularly baby boomers, choose to stay put, according to a survey released by Bright MLS.

The survey indicates that nearly one in five current homeowners plan to sell their homes next year. Notably, individuals who bought their homes within the last five years represent 24% of all homeowners but account for 32% of those planning to sell in 2025.

Homeowners in their 30s and 40s are projected to be the most active sellers. The survey reveals that 27% of those aged 30 to 39 and 28% of those aged 40 to 49 expect to sell their homes in the coming year. In contrast, only about 10% of older homeowners intend to do so.

“Record-low mortgage rates during the pandemic were a huge incentive for individuals and families to buy a home. Many of these buyers also have been able to quickly accumulate significant equity in their homes as home prices have escalated,” says Lisa Sturtevant, Bright MLS chief economist.

Data from Realtor.com shows that national median list prices increased by 37% from November five years ago. Sturtevant adds, “This wealth gain has created financial security for this group of homeowners and is also allowing them to be move-up buyers even in today’s relatively high interest rate environment.”

Realtor.com's 2025 Housing Forecast suggests a shift towards a more balanced market between buyers and sellers. Danielle Hale, Chief Economist at Realtor.com, states, “As a result, sellers will need to price carefully to attract buyers, especially in markets where affordability is an issue.” She notes that economic conditions and interest rates will play critical roles in shaping the overall market landscape.

The survey highlights family and career changes as primary motivations for selling among younger homeowners. For those in their 30s planning a move, job-related reasons were cited by 37%, while family reasons accounted for 34%. Among those in their 40s, family changes were noted by 44%, with career changes at 26%.

Meanwhile, only about six percent of homeowners aged over sixty plan on selling next year. Downsizing was the leading reason among those considering selling. With nearly sixty percent owning their homes outright without mortgage payments, many boomers remain unaffected by mortgage rate fluctuations. More than half indicated no current circumstances would prompt them to sell.

The survey included responses from over fifteen hundred eighty-one homeowners nationwide conducted last month.