When pondering the question, "should I stay or should I go," most homeowners are opting to stay in their homes and update them, rather than spending money on a down payment.
According to Zillow's latest Housing Aspirations report, 76 percent of homeowners would rather renovate than buy a new home. The age cohort that prefers remodeling to homebuying most in the study are those 55 years and older, with an 87 percent share. Retirees would rather remodel at a 91 percent share. Zillow's findings also show that 83 percent of current homeowners love their homes, and that 63 percent have no intention to sell at this time.
Rising mortgage rates also could be a factor. Since the beginning of the year, rates have risen about 90 basis points, and homeowners who have a low mortgage rate may not want a new mortgage at a higher rate. The desire among homeowners to stay where they are could be contributing to an ongoing inventory shortage. Nationally, the number of homes for sale has fallen on an annual basis for 43 straight months, although the pace of its decline has slowed in recent months.