Americans Think About Selling Homes as Prices Soar
Housing demand is high, the market is tight, and prices are soaring. With selling prices on an upward trend and sustained low mortgage rates, home owners think it’s a good time to sell.
Americans Think Now is the Time to Sell
The National Housing Survey issued by Fannie Mae in May reported around 61 percent of Americans think now is the time to list a home—that’s the highest percent of people in agreeance that now’s the time to sell since the survey first launched in 2010.
Fannie Mae’s chief economist suggested that consumer’s think it is a sellers’ market now more than any other time in the past seven years due to the high, and continually escalating, home prices.
Facing the Competitive Buyers’ Market
The housing market is tight—that includes both the home-buyer and home-seller markets.
If a homeowner places their home on the market, they join the pool of home buyers seeking an affordable home in a narrow and expensive market. Around 33 percent of people don’t think it’s a good time to be a home buyer due to the expensive market. The current buyers’ market is leaving homeowners skeptical of selling, even if their current home value is high and they think it’s a good time to sell.
Due to the concern of failing to find a new home to move into that meets the needs and budget of the seller, many home owners are choosing to not sell, continuing the housing supply shortage. While home supply remains low, prospective buyers will continue to face rising home prices.
Low Supply, High Demand: Is it the Time to Buy?
At the beginning of the summer, current homeowners voiced substantial confidence in the housing market. Three-quarters of homeowners thought selling was a good idea—a significant, ten-percent year-over-year increase. Moreover, 80-percent of respondents expressed now is the time to buy a home.
Renters weren’t so confident in the housing market and suggested if you don’t have a home to sell, it’s not the time to buy.
The market is extremely tight causing high prices that will keep rising until supply expands. Nearly half the country thinks housing prices will continue to rise without relief in sight. As for those Americans who think it’s a good time to buy, the numbers are falling.
The rise of housing prices is outpacing the rise of income making purchasing a home very difficult. Though homeowners think it’s a good time to sell, they don’t seem to want to list their house and face the tight buyers-market.
Historically, housing prices fall as we leave summer behind and enter the autumn months. Additionally, the pool of interested buyers tends to decrease—generally, people prefer to move over the summer. This means the housing market may be more approachable for buyers now and in the upcoming months.