Just 30% of U.S. adults say that now is a good time to buy a house, a 23% decrease from 2021 and the first time homebuying sentiment has ever dipped below 50%, Gallup reports. Despite a homebuying frenzy that led to heated bidding wars and record-high home prices during the COVID-19 pandemic, half of all buyers surveyed were still optimistic about home purchases.
Now, as mortgage rates rise to their highest level in over a decade and the median sale price of a U.S. home surpasses $400,000, the economic aftermath of the pandemic is taking a much larger toll on prospective buyers.
All major subgroups of Americans are significantly less positive about the housing market now than they were a year ago, with the percentage saying it is a good time to buy a house dropping at least 17 points in each of these groups. Certain subgroups who were more positive about the market in 2021 have shown slightly larger declines, including Midwest residents, suburban residents, upper-income Americans and homeowners.
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