Breaking a streak of three consecutive monthly increases, Fannie Mae found consumers are concerned about listing property right now, as well as general economic conditions.
The Housing Purchase Sentiment Index decreased 3.6 points in February to 58, returning the index closer to its all-time survey low set in October 2022. Overall, four of the HPSI’s six components decreased month over month, most notably those associated with job security and home-selling conditions.
In February, 44 percent of consumers reported that it’s a bad time to sell a home, up from 39 percent in January. The percentage of respondents who said it was a good time to sell a home decreased from 59 percent in January to 54 percent in February.
Some 24 percent also expressed concern about losing their job in the next 12 months, up from 18 percent last month.
“The HPSI declined this month and is now just slightly above the survey low set late last year,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “The decline was partly driven by a substantial decrease in consumers’ sense of home-selling conditions, with most respondents who indicated it’s a ‘bad time to sell’ citing unfavorable economic conditions and mortgage rates as the primary reasons for that belief. With home-selling sentiment now lower than it was pre-pandemic—and homebuying sentiment remaining near its all-time low—consumers on both sides of the transaction appear to be feeling cautious about the housing market.”
The percentage of respondents who said it is a good time to buy a home increased to 20 percent in February (up from from 17 percent in January). The percentage who said it was a bad time to buy decreased from 82 percent to 79 percent.