According to the quarterly Housing Opportunities and Market Experience survey from the National Association of Realtors, an increasing amount of homeowners agree that now is a good time to sell. Despite this increase, fewer renters on the other hand feel that now is a good time to buy a home.
During Q2 71% of homeowners surveyed felt it was a good time to sell which was up from 69% in Q1 and last year’s 61%.
“There are just not enough homeowners deciding to sell because they’re either content where they are, holding off until they build more equity, or hesitant seeing as it will be difficult to find an affordable home to buy,” NAR Chief Economist Lawrence Yun said. “As a result, inventory conditions have worsened and are restricting sales from breaking out while contributing to price appreciation that remains far above income growth.”
“Perhaps this notable uptick in seller confidence will translate to more added inventory later this year,” Yun said. “Low housing turnover is one of the roots of the ongoing supply and affordability problems plaguing many markets.”
Renters on the other hand, have a less optimistic outlook on the landscape as competition has been increasing. The survey showed 52% of renters think now is a good time to buy which is down from 56% in Q1 or 62% last year.
Optimism about buying from renters as well as an overall confidence in the economy have both slightly slipped per the survey. The share of Americans who felt the economy was improving had a slight dip as well in Q2 over Q1 of this year.
“It should come as little surprise that the confidence reading among renters has fallen every month since January, 64.8, and currently sits at its lowest level, 53.8, since tracking began in March 2015, 65.7,” Yun said. “Paying more in rent each year and seeing home prices outpace their incomes is discouraging, and it’s unfortunately pushing home ownership further away, especially for those living in expensive metro areas on the East and West Coast.”
There have been many transactions within the real estate industry this year regardless. With homeowners feeling now is a good time to sell, perhaps this will open more doors for buyers and help restore buyer confidence.