According to a recent Zillow report on seller motivation, an astounding 78% of homeowners list their homes due to significant life events like changes in family size or job relocations. If you’re thinking about buying or selling in the Los Angeles real estate market, understanding these motivations can provide valuable insight into current market trends and help you make informed decisions.
Key Motivations for Selling a Home
Here are the top reasons why homeowners decide to sell their property, according to the Zillow report:
- Changes in Family Size:
- 51% of sellers are motivated by changes in their household, such as having children, empty-nesting, or combining families.
- Los Angeles homeowners might outgrow their homes or need to downsize based on evolving family dynamics.
- Job Relocation or Transfers:
- 37% of sellers cite new job opportunities as a key reason for moving.
- With Los Angeles being a hub for tech, entertainment, and corporate sectors, job mobility is a frequent trigger for sellers in the area.
- Remote Work Trends:
- With the rise in remote work, 35% of sellers indicated they were moving because they work from home more often and need a dedicated office space. Conversely, 29% said they were moving because they were working remotely less often and needed to be closer to their office.
- As Los Angeles continues to be a hotspot for professionals with hybrid or remote work setups, buyers and sellers are adjusting their housing needs accordingly.
- Retirement:
- 32% of sellers move due to retirement.
- Retirees in Los Angeles may be looking to relocate to quieter, more affordable areas or seeking to cash in on the city’s high property values.
- Marriage, Divorce, or Separation:
- 32% of sellers experience a life event like getting married, divorced, or separated, which pushes them to sell their homes.
- Changes in marital status frequently drive decisions to either upsize or downsize based on new financial or family circumstances.
- Job Loss or Unemployment:
- 29% of sellers are motivated by job loss or involuntary unemployment, prompting a need to sell their home due to financial strain.
- In an expensive city like Los Angeles, financial stability is often a key factor in homeownership decisions.
How Long Do Sellers in Los Angeles Take to List Their Homes?
The typical homeowner spends 3 to 4 months seriously considering listing their home before taking action. However, it’s interesting to note that 34% of older sellers (aged 60+) take six months or more to decide. Whether downsizing or relocating, this group often takes a more deliberate approach to selling.
For younger sellers (aged 18-29), 82% thought about renting their home before ultimately deciding to sell. This highlights a trend among younger homeowners who view their property as an investment, weighing the option of renting out their home instead of selling right away.
Renting vs. Selling: What Are Los Angeles Homeowners Considering?
As a Los Angeles homeowner, you might be weighing your options between renting and selling. According to the report, 66% of sellers considered renting out their home before deciding to sell. Younger sellers, in particular, are more likely to explore this approach, as rental demand in Los Angeles remains high. For those thinking about investing in rental properties, this could be an opportunity to retain ownership while generating passive income.
What This Means for Los Angeles Buyers and Sellers
Understanding what motivates sellers can help both buyers and sellers in the Los Angeles real estate market. If you’re a buyer, being aware of these trends can give you insights into why properties are being listed and help you identify motivated sellers who may be open to negotiation. If you’re a seller, knowing what drives others to move can help you market your property more effectively and make strategic decisions about pricing and timing.
Our Take: Key Insights for Your Los Angeles Real Estate Journey
The Zillow report offers several valuable insights for both buyers and sellers in Los Angeles:
- Life events are a major driver of home sales. Understanding what motivates sellers can help you time your move or sale for maximum advantage.
- The remote work trend is reshaping housing needs. Sellers looking for larger or more versatile spaces are reshaping the Los Angeles market, making it a great time for buyers seeking homes with home offices or flex spaces.
- The decision to rent vs. sell is common among younger sellers. If you’re thinking about selling, consider whether renting your property might be a viable alternative, especially with the strong rental market in Los Angeles.
Ready to Make a Move?
If you’re thinking about buying or selling a home in Los Angeles, understanding market motivations is key to success. Connect with an experienced Los Angeles real estate agent today for personalized advice and insights into the current market.
Contact Los Angeles Luxury Real Estate Broker Abdo Pierre Faissal at Nourmand & Associates for more information 310-620-1038 / [email protected]