New findings from the National Association of Realtors® show that a record high 77% of Americans believe that now is a good time to sell a house, while those that think now is a good time to buy continues to decline.
NAR’s second quarter Housing Opportunities and Market Experience (HOME) surveyalso found that a majority of consumers believe prices have risen and will continue to rise, while the quality of schools is a critical factor in deciding whether or not to buy a home.
Half of all Americans strongly believe now is a good time to sell (compared to 46% last quarter), while 27% moderately believe this is the right time (29% last quarter). Respondents in the West are the most likely to think now is a good time (85%) as are those who currently own a home (82%). Only 22% believe that now is not a good time to sell, down from 29% in the second quarter.
Optimism that now is a good time to buy has declined slightly from last quarter. 63% of respondents either strongly or moderately believe that now is a good time buy compared to 68% last quarter. Among renters, positive feelings about purchasing continue to fall, dropping from 49% in the second quarter to 45% this quarter. Optimism is highest among older U.S. households (65 or over) and those with a household income of more than $100,000 a year (70 and 68% respectively).
NAR Chief Economist Lawrence Yun says several consecutive years of strong home price growth are enticing homeowners to consider selling. “Though the vast majority of consumers believe home prices will continue to increase or hold steady, they understand the days of easy, fast gains could be coming to an end. Therefore, more are indicating that it is a good time to sell, which is a healthy shift in the market.”
Respondents were also asked about their view of home prices in their neighborhoods. 70% believe that home prices have gone up in their area in the last 12 months, up from 68% in the second quarter. 53% also believe that home prices will continue to increase in their communities in the next six months; this is down from the last quarter (55%).
A near-record high of 60% of households believe that the economy is improving – up slightly from 58% last quarter and up significantly from 53% in the third quarter of 2017. People in a household income of over $100,000 are more likely to view the economy as improving (67%) compared with those with an income $50,000 to $100,000 (64%) and under $50,000 (49%).
The HOME survey’s monthly Personal Financial Outlook Index, showing respondents’ confidence that their personal financial situation will be better in six months, rose slightly from 62.1 in June to 62.6 in September. A year ago, the index was 62.0.
Among those who do not currently own a home, 28% of those surveyed believe that it would be very difficult to qualify for a mortgage and 31% believe that it would be somewhat difficult given their current financial situation (compared to 26 and 28% last month respectively). “This is most likely a manifestation of the constantly rising prices,” said Yun. “As prices rise so do down payments, making the mortgage qualifying process more challenging.”
In this quarter’s survey, homeowners and non-homeowners were asked how important high rated schools are in their home buying decision. Over two-thirds of those surveyed said that highly rated schools were either very or somewhat important in their decision (47% and 23%, respectively).
When asked about what considerations were taken into account when choosing a new neighborhood, 25% of respondents ranked proximity to friends and family as most important, followed by proximity to their job and a short commute (24%). Proximity to friends and family is most important to those in rural areas (31%) compared to suburban and urban (25 and 21% respectively).
“When you buy a home, you do not just buy the house; you buy a community – neighbors, parks, stores and schools,” said NAR President Elizabeth Mendenhall, a sixth-generation Realtor®from Columbia, Missouri and CEO of RE/MAX Boone Realty. “Realtors® understand the unique qualities of the neighborhoods in their area and can help individual families find and purchase the right home in the right neighborhood.”
Respondents were also asked about the number of homes available for sale in their communities. 56% of respondents reported that the number of homes available for sale in the neighborhood has remained the same over the past six months, while 23% said they have observed more homes for sale than usual.
From July through September, a sample of U.S. households was surveyed via random-digit dial, including a mix of cell phones and land lines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. Each month approximately 900 qualified households responded to the survey. The data was compiled for this report representing a total of 2,731 household responses.
