It is tough to be a homebuyer today. The supply of homes for sale is at a record low, homebuilders are slow to step up and prices are rising at the fastest pace in nearly two decades.
No wonder sentiment among homebuyers fell to the lowest level in the 10-year history of Fannie Mae’s monthly Home Purchase Sentiment Index.
The percentage of respondents who said it is a good time to buy a home decreased from 53% to 47%, while the percentage who said it is a bad time to buy increased from 40% to 48%.
Respondents to the survey largely cited high prices and tight supply as the chief reasons for their pessimism, according to Doug Duncan, senior vice president and chief economist at Fannie Mae.
“The decrease in homebuying sentiment likely indicates that some consumers, potentially flush with savings – perhaps boosted in part by stimulus payments – may be attempting, but failing, to buy a home due to heightened competition for relatively few listed homes,” Duncan said.