Fannie Mae conducts a monthly survey of 1000 consumers and they found that only 24% of consumers think now is a good time to buy. In fact, 73% of consumers think it’s a bad time to buy. Home buyer sentiment is the lowest it’s been since 2010.
There are several factors that have caused consumer sentiment to fall to such a low level. Many buyers are simply unable to buy because prices are so high. Rising mortgage rates means many can’t afford to buy. Add in the current economic uncertainty and more buyers are on the sidelines.
In Austin, our appreciate rate may be slowing. In March the average home price was up 10.91% compared to 37.4% last march. That’s more in line with Austin’s historic appreciation rate of roughly 10% per year pre-pandemic.
Yet, buyer demand is still strong in Austin. Homes are selling in just days and most with multiple offers. No one, and I mean no one expects prices to drop in Austin. Might price increases slow down, yes, definitely. The common consensus is that homes next year will be higher priced than this year. Most buyers in Austin still think this is a good time to buy. Buyer sentiment in Austin remains strong.
Could a real estate crash happen? Of course, it’s always possible. But at this point it would take some kind of economic catastrophe.
If you are thinking about buying, it would be in your best interest to buy sooner rather than later for the following reasons:
- Prices are expected to go up even more
- Mortgage rates are expected to go up
- Inventory is expected to remain low
Why is Austin different? Our strong economy, strong job market, and strong buyer demand keeps Austin among the very top places people want to move to. That could change, but it’s not likely to change quickly.
