Record Low Homebuyer Sentiment

Nationally, only 24% of consumers think now is a good time to buy a home — the lowest reading ever recorded in a monthly survey conducted by Fannie Mae since 2010.  74% of consumers that think now is a good time to sell a home.

To most, the reasons are obvious. Rising prices, rising interest rates and an uncertain economy will hold back buyers but the lack of inventory is still in the favor of sellers.

Fannie Mae Deputy Chief Economist Mark Palim warned that if consumer pessimism persists, the impacts could ripple through housing markets and dent sales more severely than previously forecast. If consumer pessimism toward homebuying conditions continues and the recent mortgage rate increases are sustained, then we expect to see an even greater cooling of the housing market than previously forecast.

What does this mean for home buyers and sellers?

Sellers: If you can sell and stay out of the purchase market right now, this might be the best time in history for you.

Buyers: Make sure the home you buy is a long term plan. Stay in your budget and make sure to purchase a home you can hold onto for 5-10 years (either to live in or rent out).

All: The sky is NOT falling! REAL ESTATE IS LOCAL. This survey was national.

Sellers, do NOT get greedy - that can backfire. Buyers, plan carefully - you don't want to make a FOMO decision. EVERYTHING WILL BE FINE. We are simply experiencing SUPPLY AND DEMAND. We have a lot of people that want to buy homes and not enough homes to sell them. 

The median national home price recently hit a new all-time high of $405,000 in March, a 13.5% increase annually, according to Realtor.com’s latest Monthly Housing Trends Report. As home prices continue to rise, the share of homes experiencing price reductions has also grown, with 25 of the 50 largest metro areas reporting an increase in price reductions last month, up from 18 in February, which may be an early sign the housing market is moderating somewhat.

Check back for added local graphs and additional stats.

In the Twin Cities region, for the week ending April 2:

• New Listings increased 0.2% to 1,500
• Pending Sales decreased 11.4% to 1,238
• Inventory decreased 11.8% to 4,986

For the month of February:

• Median Sales Price increased 8.3% to $340,000
• Days on Market decreased 4.3% to 44
• Percent of Original List Price Received increased 0.7% to 100.8%

P.S. The same Fannie Mae survey above found a survey-high 25 percent of consumers expect their financial situations to get worse over the next 12 months and 73 percent of Americans think the economy is on the wrong track.