Despite lagging inventory and higher home prices, consumers are still feeling confident about today’s market, according to NAR’s 2017 Q4 Homeownership Opportunities and Market Experience Survey.
Seventy-two percent of consumers believe now is a good time to buy a home, with 43 percent feeling ‘strongly’ about it.
Those under 34 years old were most likely to feel that now is not a good time to buy a home, while those 65 and older were more confident it is. Of people residing in the Northeast, 69 percent reported that it is a good time to buy a home. Consumers living in suburban areas were more likely to believe now is a good time to buy a home, compared to those who live in urban areas.
Seventy-one percent of respondents believe now is a good time to sell a home, with 43 percent feeling ‘strongly’ about it. Just like buying, consumers 65 and older were more likely to believe now is a good time to sell, while those under 34 were least confident. In the Northeast, only 63 percent of respondents said now is a good time to sell, the lowest of any region. Those in suburban areas were most likely to report that now is a good time to tell, compared to those in rural areas.
“The good news for possible inventory gains heading into 2018 is the fact that a much larger share of homeowners compared to a year ago think it’s a good time to sell,” said NAR Chief Economist Lawrence Yun.
Nearly two-thirds believe that home prices have risen in their areas, while 30 percent believe prices have remained consistent and 6 percent believe prices have decreased. Fifty-two percent think prices will increase, while 43 percent think they will remain the same and 6 percent believe they will decrease. However, paying for a house may be an issue. Sixty percent said they think it would be either very or somewhat difficult to qualify for a mortgage.
Only 52 percent of respondents feel the economy is improving, a decrease of 5 percent from the previous quarter.