According to the latest data from the National Association of Home Builders (NAHB) the share of adults planning a home purchase in the next 12 months dropped to 13% in the final quarter of 2022. This is down from 15% in the previous quarter and is not surprising, given that housing affordability worsened during this period, as mortgage interest rates surpassed 7.0% and reached levels not seen in nearly 20 years.
In an article written by Lorie Knish for CNBC.com she states “The hot seller’s market in recent years prompted buyers to go above and beyond to seal the deals on their prospective homes, a recent survey finds.” She further quoting an article from Clever Real Estate, sharing that “72% of buyers int he past couple years have regrets about their home purchase”.
There are many factors that affect home buyer and seller sentiment. Confidence, or lack thereof, in the economic future is a key consideration for both. In Fannie Mae’s National Housing Survey (NHS) seller sentiment is 36 point higher than October 2020, with buyer sentiment 60 points lower for the same period, in spite of the fact that interest rates remain low which is an advantage to buyers.
According to reports from the National Association of Realtors (NAR), millennials represent 37 percent of all homebuyers this past year, and have made up the largest share of homebuyers for 8 consecutive years. Another interesting fact from the NAR is that many of the homes being purchased are considered multigenerational homes that will house adult siblings, adult children, parents, or grandparents.
Have you been sitting on the fence about buying a home? This article includes information about the cost of waiting.
According to Realtor.com’s 2019 National Housing Forecast, home prices and interest rates will increase again in 2019, as they did in 2018: https://www.realtor.com/research/2019-national-housing-forecast/