Americans are growing increasingly confident in the economy and their financial situation, however this is not translating into a more positive view that now is a good time to buy a home, according to the National Association of Realtors’ first quarter Housing Opportunities and Market Experience survey.
Heading into the spring home buying season, about 68% of consumers said now is a good time to buy a home, the survey showed. This is down from 72% last quarter, and is the lowest point in the past two years.
This optimism is even lower among renters, where 55% say now is a good time to buy a home, down from 60% last quarter. Homeowners, older respondents and those living in the more affordable regions of the Midwest and South held a more positive outlook.
“The critical shortage of listings in most markets continues to spark a hike in home prices that is not easy for many buyers – and especially first-time buyers – to overcome,” NAR Chief Economist Lawrence Yun said. “Adding more fuel to the affordability fire is the fact that mortgage rates have shot up to a four-year high in just a few months. Many house hunters are telling Realtors that they are dispirited by the stiff competition for the short number of listings they can afford.”
And now experts are saying this competition and rising home prices are only going to get worse as the spring home buying season kicks into full gear.
There is, however, a light at the end of the tunnel. An increased share of homeowners now believe now is a good time to sell their home. The share of homeowners saying…