American Outlook on Buying a Home Hits Lowest Point in 40 Years
Americans have had enough. Although the pandemic helped stoke a sizzling hot housing market, buying a house has been harder than ever. There are record shortages of homes for sale and bidding wars have been all too common. Highly sought-after homes seem to sell as soon as they hit the market, which has sent prices to record highs and making it almost impossible for anyone to compete.
The stress is so high, only 29% of Americans surveyed by the University of Michigan’s Surveys of Consumers in September answered that now is a good time to buy a home. That is the smallest share since 1982, reports Business Insider. This is a complete turnaround from March 2020 when 65% said it was a good time to buy a house and even at the start of the year, 62% said it was a good time to buy.
According to the S&P CoreLogic U.S. Home Price Index, prices rose 18.6% year-over-year in June, making that the third consecutive month of home price inflation, added Insider. Homebuilders are also struggling with limited availability of land, labor and materials, slowing residential starts from a 15-year high in March, reports Bloomberg.
This year has been especially rough for millennials, noted Insider, who have entered into their prime homebuying years with very few options.
Despite the dismal outlook, a report from Realtor.com indicates that the market is starting to cool down as we head into fall and prices are beginning to stabilize, as previously reported by GOBankingRates.
Homes are spending more time on the market, suggesting a shift back to season trends that have been largely absent for the better part of a year. The median national home price for active listings has also decreased from $385,000 to $380,000 from July to August, GOBankingRates reported. Realtor.com also said that this was the fourth month in a row showing a decline in the annual growth rate, falling into single digits for the first time in more than a year.
More From GOBankingRates