Jul 1, 2017
How optimistic you are about today’s market for homes may depend largely on whether you already own one.
Recent survey results from the National Association of Realtors (NAR) show that four-fifths of homeowners feel it is a good time to buy a house. By contrast, only 52 percent of renters shared that rosy sentiment. Some of the glum outlook among the latter group is due to an epic sellers’ market due to a dearth of housing inventory. Fewer homes on the market mean higher prices which leave first time buyers feeling the pinch.
Quoted in Housingwire.com, Lawrence Yun, the NAR’s chief economist, said that while a shortage of housing stock continues to trouble the industry, hope might yet be on the horizon. The survey found that while renters’ feeling that it was a good time to purchase a home fell 10 points since last year, homeowners’ belief that it is a good time to sell rose by the same amount.
“Perhaps this notable uptick in seller confidence will translate to more added inventory later this year,” Yun said. “Low housing turnover is one of the roots of the ongoing supply and affordability problems plaguing many markets.”
Figures for the Midwest showed especially cheery homeowners with 76% indicating it was a good time to sell. That’s five points above the national average.
Yun said that renter confidence has been crumbling since the beginning of the year in the wake of higher home prices. Optimism regarding overall economic conditions is also waning. Only 54 percent said that the economy is improving, a number which has tumbled eight points since last quarter.