National Association of Realtors' survey shows increased sentiment
Most US home buyers and sellers are confident in the current state if the market according to a new survey.
The National Association of Realtors poll conducted in the fourth quarter of 2019 found that 63% of people felt it is a good time to buy (33% strongly) while 74% said it is a good time to sell.
The strength of the jobs market and economic conditions are boosting sentiment.
"The mobility rate has been very low as many have opted to stay put for longer," said NAR chief economist Lawrence Yun. "However, this latest boost – Americans saying now is a good time to move – is good news. With mortgage rates low, the timing is indeed ideal for those who want to enter into homeownership and for those looking to move on to their next home."
Older respondents (the Silent Generation and Baby Boomers) showed the highest confidence in buying conditions and higher earners ($100K+) and those in the West are more likely to feel that it’s a good time to sell.
"The Western region has seen home prices increase to the point that costs have outpaced income," said Yun. "So, it is no wonder that those living in the West would think that now is a perfect time to place a home on the market. California especially is seeing some of the highest prices ever."
The NAR survey has also asked about home prices with 64% saying their believe that prices in their communities have increased in the past 12 months.
More respondents expect local home prices to rise in the next 6 months (48% said so) than those that expect them to stay the same (41%) or decrease (11%).
On the economy, 52% believe it is improving although this falls to 47% among millennials and 41% of those living in urban areas (66% among those in rural areas).
"Whether it is a reflection of politics or true economic conditions, there is a difference of views between rural and urban areas," added Yun.