84% of Americans Think It's A Bad Time To Buy A House

[Michael Carbonare]

𝐓𝐨𝐝𝐚𝐲, 𝐚𝐧 𝐚𝐬𝐭𝐨𝐮𝐧𝐝𝐢𝐧𝐠 𝟖𝟒% 𝐨𝐟 𝐀𝐦𝐞𝐫𝐢𝐜𝐚𝐧𝐬 𝐧𝐨𝐰 𝐬𝐚𝐲 𝐢𝐭 𝐢𝐬 𝐚 𝐛𝐚𝐝 𝐭𝐢𝐦𝐞 𝐭𝐨 𝐛𝐮𝐲 𝐚 𝐡𝐨𝐮𝐬𝐞 𝐚𝐬 𝐚 𝐫𝐞𝐬𝐮𝐥𝐭.

This is the most pessimistic Americans have ever been about housing, and is primarily a function of the sky-high Mortgage Payment/Income ratio.  As a result of this negative sentiment and historical lack of affordability, U.S. homebuyer demand is down at the lowest level in decades. In comparison to pre-pandemic norms:

Existing sales are down 25%

Pending sales are down 31%

Mtg applications to buy are down 38%

Worth repeating what I have said previously: interest rates aren't the problem, as I hear so many shouting. 𝐈𝐭'𝐬 𝐭𝐡𝐞 𝐜𝐨𝐬𝐭 𝐨𝐟 𝐡𝐨𝐮𝐬𝐢𝐧𝐠. It needs to drop 30% to make buyers come off the sidelines. Be careful what you wish for. . .if rates drop considerably, I'm talking down to sub 5%, the motivated buyers come out of the woodwork and begin again throwing stupid money at sellers who are again raising prices to record highs.

I don't know the answer or solution. I'm hoping someone wiser will come along and reveal the secret sauce.

[Jay Hinrichs]

Quote from @Joe Villeneuve:

Where did you get this "84%" number from?

I personally do not believe this ..  Or maybe folks think it but sales are not down 84% :)