Fannie Mae’s recent Home Purchase Sentiment Index found that the number of consumers believing it is a good time to buy is dwindling, while sellers believing it is a good time to sell has increased. These attitudes prove how the housing market is now a seller’s market, according to HousingWire. In June, 61% of Americans believed it was a good time to buy, but that amount has dropped by 8%, to 53% in July. On the other hand, the number of Americans who think it is a good time to sell grew by 4%. Many potential first-time buyers have more negative outlooks, says Fannie Mae’s chief economist.
“Supply constraints appear to be applying upward pressure to consumers’ home price expectations, which in turn has contributed to both a sharp reversal in optimism about whether it is a good time to buy a home and further improvement in home-selling sentiment,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.
Pent-up demand coupled with low inventory created the perfect storm for median home prices to reach record highs in July – and homebuyers took notice. The net share of Americans who said home prices will go up in the next 12 months continued to rise another 3% past June’s survey record increase. The net share of respondents who said those same prices will go down fell 4%.
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