July 15, 2019
Buyer and Seller Optimism Falls Year-Over-Year
In its February National Housing Survey Monthly Indicators report, Fannie Mae revealed that its Home Purchase Sentiment Index had dropped nine percent over the course of a year. This is likely partially a result of the perception-fallout of historically high prices-to-buy in late 2017 and early 2018 that caused much-reported pricing wars, especially in the nation’s hottest metropolitan markets. Buyers’ fatigue and buyers’ remorse were the natural results. This news ran in tandem with a showing that a significantly diminished number of Americans reported a substantially higher household income in early 2019 than had reported such an increase at the same time of year in 2018.
Fortunately for the larger economic picture, the latter fact seems to have been somewhat balanced by an increase of eight percent in the job stability confidence rubric in the index. Still, it is notable that this higher confidence in the jobs market was not matched by similar certainty in the housing market.
The sentiment felt by home sellers also fell as compared to the previous year. The number of homeowners who felt early 2019 was a good time to sell a home went down a full six percentage points. This was likely because of the softening of the market due to the above conditions, alongside the fear of possibly of higher interest rates with which potential buyers would be forced to contend, which has the automatic result of decreasing the chance of multiple offers. Indeed, the expectation that home purchase prices would rise had decreased at the time the report was released by a remarkable 19 percent from early in 2018—when that rate was at its highest point in the survey.
Still, for the most part the index was steady as compared with January’s report—declining a mere 0.4 points overall.
Regardless of the sentiment at large, right now is a good time to buy. And when you buy, you could hardly do better than to have Topouzis & Associates, P.C. aid with your closing. We are experts at ferreting out defects of title and disposing with them in advance of closing in order to decrease the murkiness of property ownership. We take pride in the great amount and quality of experience we bring to the closing table in Rhode Island, Massachusetts, and Florida. Contact us if you want a partner in your property closing—one who makes everyone involved feel like family.