Fannie Mae reports that some homeowners previously clinging to their homes might be loosening their grip, as high prices are enticing some to finally consider posting that “for sale” sign.
However, some buyers are raising an eyebrow at the higher prices.
Fannie Mae’s latest Home Purchase Sentiment Index shows that the number of consumers who say now is a good time to sell a home is close to the all-time high, set in June. The index rose 1.2 points in August to 88, and is now up 21 percentage points compared to the same period last year.
Fannie credits the “good time to sell component” and the mortgage rates expectations as reasons for the rise.
Meanwhile, the net share who said it’s a good time to buy fell 5 percentage points in August and is down 16 percentage points year-over-year.
“In the early stages of the economic expansion, home-selling sentiment trailed home-buying sentiment by a significant margin. The reverse is true today,” says Fannie Mae Chief Economist Doug Duncan.
“The net ‘good time to sell’ share is now double the net ‘good time to buy’ share, with record-high percentages of consumers citing home prices as the primary reason for both perceptions. Such a sizable gap between selling and buying sentiment, if it persists, could weigh on the housing market through the rest of the year.”
What this means is, there may be more inventory on the horizon … and possibly less competition to buy.
Source: Fannie Mae