Dive Brief:
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Nearly three-quarters of homeowners (71%) say now is a good time to sell a home, according to the National Association of Realtors Q2 Homeownership Opportunities and Market Experience survey. That’s up from 69% in Q1 2017 and 61% in Q2 2016.
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The share of renters who say now is a good time to buy dropped to 52% in Q2 from 56% in Q1 and 62% a year ago, while the percentage of homeowners who say now is a good time to buy was unchanged from Q1 to Q2 and year-over-year, at 80%.
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Fewer than half of respondents (42%) believe homes are affordable for nearly all buyers, although more respondents in the Midwest reported thinking that homes are affordable (55%) than did in the West (29%). Two in 10 respondents said they would consider relocating to find a more affordable place to live.
Dive Insight:
With renter confidence at its lowest levels since the NAR began tracking the measure in March 2015 — and with that measure falling each month since January — homeownership is moving further out of reach for many would-be buyers. The NAR survey follows similar data reported by Fannie Mae that showed the net share of Americans who say now is a good time to buy a home at its lowest levels in recent years. The share of those who believe now is a good time to sell, however, is trending upward.
The Fannie Mae results represent the second time since 1996, when it started tracking the measures, that the share of those who say now is a good time to sell surpassed the share of those reporting now is the time to buy.
Still, while potential sellers are confident, too few are listing their properties for fear of being unable to secure an affordable replacement in time. More still, many who are listing their homes are doing so at lower prices than they could likely get, possibly in an effort to expedite the sales process, or because today's price-growth climate has made forecasting a challenge.
Sellers’ reluctance is straining existing inventory and putting the pressure on builders to meet growing demand with new construction. However, a drop-off in builder optimism in June and a slowdown in housing starts and building permit authorizations in May indicates that inventory conditions will remain tight in the coming months. A projected downturn in buyer traffic according to the latest National Association of Home Builders/Wells Fargo Housing Market Index suggests that continued home-price increases may turn some buyers away from the market.