Survey Says: Now is a Good Time to List
Posted on Sep 25, 2017 by Matt Barbato
Optimism about the housing market is increasing even though existing-home sales decreased in August.
The National Association of Realtors unveiled the Housing Opportunities and Market Experience (HOME) survey. The results could be indicative of a pending market shift.
In the report, 77% of respondents said now is a good time to buy a home, while 78% of participants believe the time is right to sell their home.
Homeowners appear to be especially confident in their ability to sell in this market. Eighty percent of respondents who currently own a home think now is the right time to list their home for sale.
This sunny outlook could be predicated on the general perception of home prices. Sixty-four percent of respondents believe home prices have increased in their community over the last 12 months. That response represents an increase from the second quarter of 2017 and is 11 points higher than the response from the 2016 third quarter.
People also have a positive outlook regarding the economy and that mindset could be playing a role. Fifty-seven percent of households think the economy is on the upswing after the third quarter, which is a 9% increase from last year.
Renters might not be changing their behavior anytime soon, however. The NAR reports 51% of renters expect their rent to increase next year. However, 42% of those respondents plan to either re-sign their lease in 2018 or find a cheaper alternative if their rent goes up.
The greatest problem in the industry recently has been a scarcity of new and existing homes for sale despite a wealth of demand. NAR chief economist Lawrence Yun said this latest report doesn’t guarantee a change in the market.
“The housing market has been in a funk since early spring because of the ongoing scarcity of new and existing homes for sale,” Yun said. “The pace of new home construction has not meaningfully broken out this year, and not enough homeowners at this point have followed through with their belief that now is a good time to sell. As a result, home shoppers have seen limited options, stiff competition and weakening affordability conditions.”
This newfound optimism across the market could represent an opportunity for agents seeking new listings. An uptick in home sales could be on the horizon.
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