The Fannie Mae Home Purchase Sentiment Index for September decreased 1.2 points to 74.5, with more and more Americans reporting that they feel it’s a bad time to buy due to high home prices.
As of September, 66 percent of consumers reported that it’s a bad time to buy a home, up from 63 percent from the month prior and significantly higher than the 28 percent of respondents who believe it’s a good time to buy. That confidence marker is a return to a record low last seen in July.
“Consumers feel it’s a bad time to buy a home but a good time to sell—and they continue to cite high home prices as the primary reason,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Across all consumer segments, renters and younger consumers were slightly more likely to indicate it’s a bad time to buy, perhaps a reflection of their generally lower incomes and their observation that the availability of affordable homes is lacking. We’re also seeing a softening in consumers’ expectations that home prices will continue to increase; however, in our view, other housing market fundamentals remain supportive of further home price appreciation – including low levels of inventory and low interest rates.”
Of those surveyed, 74 percent agreed that it’s a good time to sell a home.