Americans Feel Like It’s a Better Time to Sell Than to Buy a Home
For the first time in more than a decade, Americans are feeling better about selling a home than buying one.Overall, Americans’ optimism toward selling a house has risen sharply since the Great Recession, while their view toward buying has stagnated over the course of the expansion and dipped 11.69% in September from an index level of 77 in January.Americans’ growing confidence in selling points to underlying trends in the housing market, such as fast-rising prices and tight inventory.In addition to rising home prices and tight inventory, a demographic element also underpins Americans’ positive outlook toward selling, as a large share of homes in the U.S. are owned by those over age 55.As that cohort ages, seniors probably more likely thinking about selling their house.
https://blogs.wsj.com/economics/2017/11/07/americans-feel-like-its-a-better-time-to-sell-than-to-buy-a-home/
I wonder what the reasoning for this is. It is true that economic productivity has been increasing, consumer confidence has been increasing, and stock market indexes are at all-time highs. I believe that the below 2% level of inflation could have something to do with this mindset of selling over buying. Also, with such low interest rates, I would think that people would want to buy homes and use the low rates to get a great LT mortgage. I am curious to hear more about what others think is the reason to this.
ReplyDeleteHousing markets go through highs and lows, much like stocks. It's impossible to perfectly time to buy or sell your home, just like a stock. Interest rates on home loans fluctuate frequently depending on market conditions. When interest rates are going up, many think they should buy a home before they increase even higher. And when interest rates are low people are more inclined to buy.
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