With rising prices negatively affecting their view of the market, fewer Americans said it was a good time to purchase a house in September compared with the previous month and in September of last year, Fannie Mae said.
Even so, the company's monthly Home Purchase Sentiment Index rose to 81 for September, a gain of 3.5 points over 77.5 for
Compared with
"The HPSI has recovered more than half of the early pandemic-period decline, mirroring the
The gap between those consumers that said it was a good time versus a bad time to buy narrowed six percentage points in September compared with August.
While a majority, 54%, said September was a good time to buy, that was down from 59% in both August and September 2019. At the same time, 38% said last month was a bad time to buy, up from 35% in August and 31% for September 2019.
But given those rising prices, more people said September was a good time to sell compared with it being a bad time, 56% to 38%. For August it was 48% to 44% and one year ago it was 67% to 23%, respectively.
In the September survey, 41% of the respondents said home prices will rise over the next 12 months, with 34% responding that they will stay the same and 17% expecting them to decline. For the prior month, slightly more people, 34%, expected them to stay the same, with 33% stating prices would go up; 26% expected them to go down.
Regarding
When it comes to job security, 83% said they were not concerned about losing their job over the next 12 months, up from 78% in August.
Even though it is not calculated in the HPSI, the share of respondents that said
But will those potential purchasers have a property to buy?
"Going forward, we believe the wild card to be whether enough sellers enter the market to continue to meet the strong home-buying demand," Duncan said. "The home purchase market requires the proper mix of home price growth and continued economic recovery to achieve sustainable levels of housing activity."