Inflation and the slowing economy have had a cratering effect on buying and selling a home.
In fact, according to a new survey, most Americans are quite pessimistic about the housing market overall.
The Fannie Mae Home Purchase Sentiment Index — which measures consumers’ feelings about housing — dropped 3.4 points to 64.8 points in June. That’s the second-lowest Index in more than a decade. Only 20 percent of consumers looking to buy a home said now was a “good time” to do so. About 75 percent of hopeful buyers said that now was a “bad time” to buy. Those looking to sell a home aren’t feeling any better. The report found that the percentage of sellers who thought now was a good time to sell fell from 76 percent in May to 68 percent in June.
Unsurprisingly, the main driver of this pessimism was the economy. A whopping 81 percent of consumers said the economy is on “the wrong track.” Also, for the first time in almost seven years, about 50 percent of respondents said they thought it would be “difficult” to secure a mortgage. Consumers were also worried about jobs — about one-fifth of those surveyed said they were worried about finding employment. That’s the highest that mark has been in more than a year.
The takeaway from this report? The economy is not in a strong place, so if you’re considering buying or selling a home, it might pay to wait things out. Patience can serve you well if you let it.