Record number state it's a sellers housing market
As home prices continue to rise, a record-high 77% of people surveyed think it's currently a strong time to sell a house, according to the National Association of Realtors.
NAR's third-quarter Housing Opportunities and Market Experience report showed a growing optimism for sellers, with an increase of two percentage points both year-over-year and quarter-over-quarter. The years of disparity within the housing inventory has driven demand for homebuyers and the growth in home prices.
While the demand for housing inventory still outweighs supply, relief is projected to come for the shortage over the next 18 months.
"Though the vast majority of consumers believe home prices will continue to increase or hold steady, they understand the days of easy, fast gains could be coming to an end. Therefore, more are indicating that it is a good time to sell, which is a healthy shift in the market," NAR Chief Economist Lawrence Yun said in a press release.
Conversely, the sentiment around buying dropped to its lowest level in over two years. Only 63% believe it's a good time to buy, compared to 72% a year ago and 68% in the previous quarter. The feeling is more extreme for renters, with just 45% thinking now's the time to purchase a home, compared to 62% last year and 49% last quarter.
Qualifying for mortgages and high down payments are the common deterrents for those looking to buy.
"This is most likely a manifestation of the constantly rising prices. As prices rise so do down payments, making the mortgage qualifying process more challenging," said Yun.