Americans are feeling upbeat about the housing market. More than half of Americans—or 63%—say now is a good time to buy a home, and 74% of sellers say now is a good time to sell, according to the fourth-quarter findings from the Homeownership Opportunities and Market Experience survey, conducted by the National Association of REALTORS®.
Low mortgage rates and a belief that the economy is improving may be helping to ignite some momentum in the housing market and finally motivating consumers to make a move.
“The mobility rate has been very low as many have opted to stay put for longer,” says Lawrence Yun, NAR’s chief economist. “However, this latest boost—Americans saying now is a good time to move—is good news. With mortgage rates low, the timing is indeed ideal for those who want to enter into homeownership and for those looking to move on to their next home.”
Older adults—those born between 1925 and 1945—appear to be the most eager generation in the buying mood. Respondents from the silent generation were the most likely to say now is a good time to buy, at 73%, followed by younger baby boomers (those born between 1955 and 1964) who also are viewing homebuying favorably at 70%.
Among home sellers, 82% of respondents who earn $100,000 or more say now is a good time to sell. Also, 81% of consumers who live in the western region of the U.S. were the most upbeat about selling.
“The western region has seen home prices increase to the point that costs have outpaced income,” Yun says. “So it is no wonder that those living in the West would think that now is a perfect time to place a home on the market. California especially is seeing some of the highest prices ever.”
Many consumers believe home prices will continue to rise across U.S. markets. Forty-eight percent of respondents said they believe prices will rise over the next six months, with the millennial generation most likely to believe home prices will increase in their communities. Respondents from the South also were the most likely to say home prices would climb over the next six months.
Source: “2019 Q4 Housing Opportunities and Market Experience (HOME) Survey,” National Association of REALTORS® (Jan. 9, 2020)
