Home-Owners-In-The-States-Think-It's-A-Good-Time-to-Sell

Home Owners In The States Think It’s A Good Time to Sell

10.07.17

Over 70% of home owners in the United States think it is a good time to sell a property, up from just 61% a year ago with estate agents hoping it will help with lack of supply.

However, fewer people currently renting a home think it is a good time to buy and overall people are less confident about the economy and their own financial situation, according to the latest survey from the National Association of Realtors.

Agents are concerned about the supply of homes for sale falling for the last two years and hope that the higher level of optimism in the survey might boost inventory levels.

Overall some 71% of home owners survey in the second quarter of 2017 said that they think now is a good time to sell, up from 69% in the first quarter and from 61% in the first quarter of 2016.

Respondents in the Midwest were the most optimistic at 76% and the region surpassed the West at 72% for the first time the quarter to be the most likely to think now is a good time to sell.

However, Lawrence Yun, NAR chief economist, says it’s apparent there’s a mismatch between home owners’ confidence in selling and actually following through and listing their home for sale.

‘There are just not enough homeowners deciding to sell because they’re either content where they are, holding off until they build more equity, or hesitant seeing as it will be difficult to find an affordable home to buy,’ he said.

‘As a result, inventory conditions have worsened and are restricting sales from breaking out while contributing to price appreciation that remains far above income growth. Perhaps this notable uptick in seller confidence will translate to more added inventory later this year. Low housing turnover is one of the roots of the ongoing supply and affordability problems plaguing many markets,’ he explained.

Confidence among renters that now is a good time to buy a home continues to retreat with 52% thinking now is a good time to buy, down from 56% in the previous quarter and 62% a year ago.

Conversely, some 80% of home owners think now is a good time to make a home purchase, unchanged from last quarter and a year ago. Younger households, and those living in urban areas and in the costlier West region are the least optimistic.

The surge in economic optimism seen in the first quarter of the year appears to be short lived. The share of households believing the economy is improving fell to 54% in the second quarter after soaring to a survey high of 62% in the first three months of the year.

Home owners, and those living in the Midwest and in rural and suburban areas are the most optimistic about the economy. Only 42% of urban respondents believe the economy is improving, which is a drastic decrease from the 58% a year ago.

‘It should come as little surprise that the confidence reading among renters has fallen every month since January and currently sits at its lowest level since tracking began in March 2015,’ said Yun.

‘Paying more in rent each year and seeing home prices outpace their incomes is discouraging, and it’s unfortunately pushing home ownership further away, especially for those living in expensive metro areas on the East and West Coast,’ he added.

The survey also found that 42% of respondents believe homes are affordable for most buyers with those living in the Midwest being the most likely to believe homes are affordable at 55%. At 29%, those in the West are least likely to think homes are affordable.

Additionally, 20% of respondents would consider moving to another more affordable community. Those earning under $50,000 annually, 27%, and those age 34 and under, 29%, were the most likely to indicate they would consider moving.

‘Areas with strong job markets but high home prices risk a migration of middle class households to other parts of the country if rising housing costs in those areas are not contained through a significant ramp-up in new home construction,’ Yun concluded.

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