As the spring housing market gets underway there could be a problem with how buyers and sellers are feeling
As the spring housing market gets underway there could be a problem with how buyers and sellers are feeling.
With low inventory driving up prices, increased willingness of homeowners to list their properties is welcome, but a new report suggests demand may be hampered.
The National Association of Realtors’ HOME (Housing Opportunity and Market Experience) Survey shows that homeowners are increasingly optimistic about selling (74% in Q1, 2018 vs. 71% in Q4, 2017); but non-homeowners are concerned about saving for a down payment and rising mortgage rates.
The share of potential buyers that feel that now is a good time to buy is at its lowest for 2 years (68% compared to 72% last quarter) and this is even lower among renters (55%, down from 60%).
“The critical shortage of listings in most markets continues to spark a hike in home prices that is not easy for many buyers – and especially first-time buyers – to overcome," said NAR chief economist Lawrence Yun. "Adding more fuel to the affordability fire is the fact that mortgage rates have shot up to a four-year high in just a few months.”
He added that Realtors are reporting dismay among buyers of the competitiveness of the market for the homes they can afford
However, limited income (47%), student loan debt (30%), and rising rents (28%) were the top three obstacles cited by non-homeowners as barriers to buying.
When asked for potential reasons why they may find qualifying for a mortgage difficult, 45% said income uncertainty, 34% low credit score, and 26% said too much existing debt.