Consumers are increasingly optimistic about the economy and their personal finances, but homeownership is a different story. Home buyers are quickly losing confidence in their ability to afford a home in today’s challenging housing market. High home prices, rising mortgage rates, and a shortage of homes for sale have created an unforgiving housing environment, especially for buyers on a budget.
Current homeowners, on the other hand, are beaming with confidence. Substantially more homeowners said now is a good time to sell, and their sentiment is justified. Home prices spiked 7% in March and grew a cumulative 48% since 2011.
- About 68% of consumers said now is a good time to buy, the lowest level in two years
- About 74% of consumer said now is a good time to sell, up from 69% last year
- A critical shortage of listings and high home prices have been tough on many buyers, especially first-time buyers
Consumers are growing increasingly optimistic about their personal finances, but the opposite is true when it comes to their ability to buy a home or qualify for a mortgage, according to the National Association of Realtor’s latest Housing Opportunities and Market Experience survey.
The survey found that just 68 percent of consumers are positive about their ability to buy a home, compared to 72 percent in the previous quarter. That represents the lowest level in two years, the NAR said.
“The critical shortage of listings in most markets continues to spark a hike in home prices that is not easy for many buyers—especially first-time buyers—to overcome,” said NAR Chief Economist Lawrence Yun.
On the other side of the equation, 74 percent of current homeowners state they believe now is a good time to buy, compared to just 69 percent one year ago.
“There’s no question that a majority of homeowners have amassed considerable equity gains since the downturn,” Yun said. “Home prices have grown a cumulative 48 percent since 2011 and are up 5.9 percent through the first two months of this year.”