Most Americans think now is not a good time to buy a home.
Record home prices, a severe shortage of homes for sale and now rising mortgage interest rates have made it seem nearly impossible for many buyers to find and then afford – let alone earn a home. bidding war – their dream homes. That’s why about 79% of renters and homeowners in May thought it was a bad time to buy a home, according to a recent report from Fannie Mae.
(The survey was based on a monthly survey of approximately 1,000 respondents conducted from May 1 to May 23.)
Nearly three-quarters, 70%, of respondents expect mortgage rates to continue to rise over the next year. As fears of another recession grow, more people have said they fear losing their jobs in the next 12 months.
According to the report, only 17% of consumers believe now is a good time to pull the trigger on a home purchase. This is the lowest percentage since the survey was launched in 2010. First-time buyers, who often do not have the largest budgets of repeat buyers, are particularly struggling.
“Homebuyers in the United States are the most dissatisfied they have been since we began this survey. This dissatisfaction is fueled by the pace of home price appreciation, rising mortgage rates and the significant increase in inflation,” says Fannie Mae’s chief economist, Doug Duncan. Many people also “feel the economy is on the wrong track” as inflation persists.
About 16% of respondents said they feared losing their job. While that’s not a lot, it’s a big jump from the 11% who reported similar fears in April. Additionally, more people, 16%, said their household income had dropped significantly.
While now may not be a good time to buy, around three-quarters of respondents, 76%, think now is a good time to sell a home.
“If you own a home today… you have a lot of net worth,” says Duncan. “The key is if you have somewhere to go.”
That’s likely because almost half, 47%, expect home prices to continue rising over the next year. This is despite the belief of many experts that the housing market has become so unaffordable that it is overdue for a correction, if it has not already.
“Housing has transformed, and it’s going to slow down in the future,” says Duncan. “We expect the pace of home price appreciation to slow significantly.”