It is undeniably a seller’s market. But, does that mean it’s a ‘bad time’ for you to buy a home? Marian McPherson wrote an article in Inman outlining Fannie Mae’s Home Purchase Sentiment Index (HPSI). While the HPSI stayed the same, and increase of 8% of respondents reported they believe it’s a ‘bad time’ to buy, totaling 64%, almost two thirds of homebuyers.
First time homebuyers reported the highest negative outlook on homebuying. Duncan explained, “It’s likely that affordability concerns are more greatly affecting those who aspire to be first-time homeowners than other consumer segment who have already established homeownership.” Mortgage rates have been at a low as well as employment normalizing as the world reopens from Covid lockdowns. Reports say 88% of respondents claim they have a secure job for at least the next 12 months and 56% claim a steady household income in spite of market volatility.
Doug Duncan, Senior Vice President and Chief economist of Fannie Mae, says, “underlying buy and sell components continued to diverge, setting record positive and negative reading, respectively.” Duncan is referencing how supply and demand pull on each other creating a level, or in this case an unlevel, playing field. As the number of homebuyers increased over the last year, the number of homes being sold does not match the need and demand is outweighing supply, creating a skewed market. However, this does not mean now is not a good time to purchase.
It is predicted that the market will slow down within the year creating a more level supply and demand. There may be more obstacles and competition but with the right real estate agent, the possibilities prevail. Please reach out to us with any questions or concerns you may have, we would love to assist you in finding your dream home.
Read McPherson’s article here https://www.inman.com/2021/07/08/nearly-two-thirds-of-buyers-say-its-a-bad-time-to-buy-a-home/.