The current state:
The National Association of Realtors recently reported that existing U.S. home sales totaled 4.09 million last year, an 18.7% decline from 2022 and the lowest full-year level since 1995.
One factor driving the decline is a shortage of homes for sale – there were 1 million homes on the market at the end of December compared to the historical average of 2.5 million. According to a Redfin analysis of data from the Federal Housing Finance Agency’s National Mortgage Database, more than 88% of homeowners with mortgages have an interest rate below 6%, and 59% have a rate below 4%. With the 30-year fixed mortgage rate in the mid-6% range, many homeowners are reluctant to sell.
How we’re feeling right now:According to this week’s Consumer Pulse, 4% of respondents who are homeowners say they plan to relocate within the coming year, and an additional 14% may relocate within the next three years. Additional homeowner data from this week’s Consumer Pulse include:
- 49% do routine maintenance on a regular schedule.
- 55% say their house needs minor repairs.
- 12% say their house needs major improvements.
Why it matters:
Home sales are a big driver of home improvement spending, with 25% of respondents saying they will invest $5,000 or more to get their homes ready for sale. Looking beyond home sales, brands and retailers can encourage homeowners to do more routine maintenance on a more regular basis and demonstrate ways in which they can help them tackle their minor home repairs.
Do you want to take the Pulse of your customers? Our Insights team will partner with you to design a study to help you better understand your customers and their problems, and how your brand can win at retail.
To get additional insight into what this means for brands and retailers, read the entire study.
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