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The number of homeowners optimistic about selling their homes dropped in the third quarter, interrupting a streak of rising confidence as the housing market shifted out of their favor. Out of hundreds of home sellers surveyed nationwide earlier this month, only 35.1 percent said now is a good time to sell a home in their neighborhood, according to the latest Real-Time Seller Survey from Redfin. The response reflects a decline of more than 17 percentage points from the second-quarter survey, which found more than half of sellers felt they had an advantage in the market.
Even as more sellers bring their expectations in line with what's happening in the market, the majority are still hoping to get as much out of selling their home as possible. When asked why they're waiting to sell, 59.3 percent of respondents in Redfin's survey said they want to get the maximum price as appreciation continues to carry on. Sellers also cited supply concerns as a reason to wait, with more than one-third saying there's not enough inventory for them to find a new home—and with more than half of homeowners hoping to squeeze every dollar out of their listing, 16.3 percent said they're waiting right now because there aren't enough affordable homes to choose from.
Contracts for home sales improved annually in September, marking the first year-over-year increase so far in 2014. The National Association of Realtors' Pending Home Sales Index ticked up 0.3 percent to 105 from August's 104.7, according to a report from the group. Compared to a year ago, the index climbed 1 percent—the first yearly increase in 11 months. Despite falling short of last year's levels, home sales in recent months have benefited from a more buyer-friendly market as inventory makes headway and price growth moderates. While stringent lending standards remain an obstacle for many would-be homeowners, the recent finalization of a securities risk retention rule has the association hopeful that tight credit conditions will be less of a concern going forward.
