Many metro areas across the county are beginning to look like a seller’s market with more buyers are pushed aside as home values rise.
The latest Fannie Mae Home Purchase Sentiment Index® (HPSI) experienced a 0.5 percentage point drop in May to 86.2. People who were surveyed to see if the think that now is a good time to buy a home reached a record low after dropping 8 percentage points, and the people who said that now is a good time to sell a home climbed 6 percentage points to an all-time high.
This marked the second time in the survey’s history that the net share of Americans saying it’s a good time to sell was higher than those saying it’s a good time to buy.
The survey also indicated a greater belief that mortgage rates will decrease over the next 12 months, with that component rising 5 percentage points.
The share of people who think home prices will rise was down by 5 percentage points.
Americans are also less concerned that they will lose their jobs with the index dropping 6 percentage points to 71%, back near the level seen in March.
The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 5 percentage points to 18% in May.
“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.
“However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market, perhaps due in part to concerns over finding an affordable replacement home. Prospective homebuyers are likely to face continued home price increases as long as housing supply remains tight.”