Hopeful home buyers are not feeling the love. According to a recent report, the percentage of those who think it is a good time to buy is the lowest it has been since the late 70s.
As Marketwatch reports, the Gallup study found that just 30 percent of Americans think now is a good time to buy a house — a 23 percent drop from last year. This is the first time since 1978 that the percentage has dropped below 50 percent. There are several reasons why Americans are feeling down about the buying market. The average cost of a home is now 34 percent higher than it was at the start of the pandemic, and most Americans think it will get more expensive. And while mortgage rates were low at the start of the pandemic, they are now higher by two full percentage points. That uptick in rates has created high monthly payments. The study found that the average mortgage payment is now $800 more than it was during the beginning of the pandemic. The supply of houses is also low, so consumers feel they are being forced to buy homes that are less than ideal.
Despite all the doom and gloom from the report, the study did find that 45 percent of Americans still think that owning a home is a good investment. That’s certainly true, but Americans are wise to not let that force them into buying a home during a shaky market. The key to finding a home is patience. Make sure your finances are in order and your credit score is high, then search for a home that makes sense for you. If that means waiting until the market improves, there’s nothing wrong with that.