The sentiment of home buyers has weakened due to high prices while sellers are being deterred by economic conditions
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The sentiment of home buyers has weakened due to high prices while sellers are being deterred by economic conditions.
That’s the finding of the latest Fannie Mae Home Purchase Sentiment Index which slipped 1.5% in July after matching the all-time high in June.
The net share of those who think now is a good time to buy fell 7% while those who said it’s a bad time to buy reached a new high. Among sellers, the decrease in those saying now is a good time to sell was 11%.
Job security is less of a concern but the share of Americans who say that their finances have not significantly improved over the past 12 months was down another percentage point in July.
“It’s clear that high home prices are a growing challenge helping to send buying sentiment to a record low,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “However, we find the notable decline in selling sentiment surprising. If it persists, this month’s decrease in optimism regarding the direction of the economy, which appears to coincide with rising uncertainty regarding the outlook for pro-growth legislation this year, could weigh on overall housing sentiment in the second half of the year.”
Those who expect house prices to continue rising was up 1 percentage point from June.
That’s the finding of the latest Fannie Mae Home Purchase Sentiment Index which slipped 1.5% in July after matching the all-time high in June.
The net share of those who think now is a good time to buy fell 7% while those who said it’s a bad time to buy reached a new high. Among sellers, the decrease in those saying now is a good time to sell was 11%.
Job security is less of a concern but the share of Americans who say that their finances have not significantly improved over the past 12 months was down another percentage point in July.
“It’s clear that high home prices are a growing challenge helping to send buying sentiment to a record low,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “However, we find the notable decline in selling sentiment surprising. If it persists, this month’s decrease in optimism regarding the direction of the economy, which appears to coincide with rising uncertainty regarding the outlook for pro-growth legislation this year, could weigh on overall housing sentiment in the second half of the year.”
Those who expect house prices to continue rising was up 1 percentage point from June.
