Homebuyer sentiment has been low for most of the year, but it appears a record number of Americans agree that October was not a good time to buy a home in the U.S. According to the latest numbers out from Fannie Mae, which tracks monthly consumer sentiment, a record 85 percent of Americans say it is a bad time to buy.
As consumer frustration toward housing unaffordability and an economy battling inflation continues to depress overall sentiment, 78 percent of respondents also believe the economy is on the “wrong track.” That’s up 7 percentage points from last month, with the vast majority once again pointing to inflation as the top reason for that belief.
“Consumers expressed even greater pessimism toward the larger economy this month, in addition to their ongoing frustration with the housing market,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Across all income groups, inflation has consistently driven the ‘wrong track’ belief since the end of last year, suggesting consumers are fed up with the high prices of many goods and services. Although the labor market is strong and wages have risen in the past year, consumers may believe that their purchasing power has not kept up with prices, as 69 percent of consumers say their incomes are ‘about the same’ compared to the previous year. We expect this tightness in household finances, along with high home prices and elevated mortgage rates, to prolong the affordability challenges facing many would-be homebuyers.”
Elsewhere in the latest survey, 63 percent said October was a good time to be selling a home, unchanged from September. The percentage who said it was a bad time to sell also remained unchanged at 37 percent.