Many Homeowners are wary of selling in this current market even though they would like to move. Some want to move up, others would like to downsize. They both seem to have the same concerns. The 2 biggest fears sellers voice: the possibility of either having 2 house payments or having nowhere to move to. Sellers realize that taking advantage of the rise in values also means paying more for a new home. That isn’t taking into account the rise in interest rates. I read a report in The MReport his morning that cites studies this situation. Thought I would share.
Why Are Home Sellers Wary of Trading Up?
The upward movement of home prices has made both home sellers and buyers wary about selling or purchasing a home. This, according to the findings of the Fannie Mae Home Purchase Sentiment Index (HPSI), released on Tuesday.
The HPSI fell in July for the second consecutive month, dropping 4.2 points to 86.5 in July after reaching survey highs in April and May.
Fannie Mae attributed this drop to declines in four of the six HPSI components—those who said it was a good time to buy a home; those who said it was a good time to sell; those who said that home prices would go up; and those who said that they were not concerned about losing their job.
According to the survey, the net share of respondents who said that now was a good time to buy a home fell 4 percentage points from June to 24 percent. Those who said it was a good time to sell, also declined 6 percentage points from June’s survey high to 41 percent.
“Home purchase sentiment seems to have reached a plateau, with potential home sellers likely struggling to find a home to buy amid slow supply growth, expectations for rising mortgage rates, and significant home price increases,” said Doug Duncan, SVP and Chief Economist at Fannie Mae
To Read The Full Report Click Here
Do you have questions?
Contract us and we will try to answer all your questions. If we can’t we will try to steer you in the right direction to get those answers. Speaking with a great mortgage lender and maybe even your tax professional could be beneficial. You need to go into this with eyes wide open and armed with information!
