The percentage of people who think it’s a bad time to buy a home hits a record high
Housing sentiment fell in July as there were fewer people who felt that it was a good time to sell.
The Fannie Mae Home Purchase Sentiment Index was 86.8 during the month, a decrease of 1.5 percentage points from the June index, which matched the all-time high. Compared to the year-ago period, the index rose 0.3 percentage points.
The month-over-month decline was driven by decreases in three of the six components of the index.
The biggest decrease was seen in the net percentage of those who say it is a good time to sell. The figure fell 11 percentage points to 28% after an all-time high in June. Meanwhile, a survey low was recorded in the net share of Americans who say it is a good time to buy a home, which slid seven percentage points to 23%. The index also saw a record high in the net percentage of those who say it is a bad time to buy a home. Additionally, only 16% of Americans said their household income is significantly higher than it was 12 months ago, a drop of one percentage point from June and a continued decrease.
Other components of the index posted gains during the month. More Americans say that home prices will go up, in line with June’s upward trend. More people also say they are not concerned about losing their job, at 75%, an increase of nine percentage points from June.
“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.”
