Strong Seller’s Market in Real Estate Continues to Drive Low Sales of Home Warranties

The strong seller’s market in real estate continues to drive low sales of home warranties included as part of a real estate transaction, creating a significant opportunity for direct-to-consumer (DTC) home warranty companies.  In a buyer’s market, home warranties are often purchased by the seller of a home and offered to the buyer as part of a real estate transaction. The strong seller’s market since 2021 drove a significant decline in home warranties purchased by sellers. The percentage of homes sold with a home warranty fell from 28% in 2019 to 20% since 2021.  The reduction in attached home warranties created an opportunity for DTC companies to market to recent home buyers who would have received a home warranty at the time of sale in a buyer’s market.

Source: Frontdoor