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In October, only 16 percent of consumers said they think now is a good time to buy a home, a monthly survey by the Federal Home Loan Mortgage Corp. (Fannie Mae) found.
The figure is the smallest since Fannie Mae began the survey in 2011 during the Great Recession and marks the eighth consecutive month of decline.
Thirty-seven percent of survey respondents expect home prices to fall over the next 12 months, up slightly from 35 percent in September.
Fifty-one percent of people responding think now is a good time to sell a home, down from 59 percent in September.
The survey blends together consumers’ feelings about home prices, mortgage interest rates, and the job market into a single number.
TREND FORECAST: The higher inflation and interest rates rise, the deeper homebuyer demand will sink. Therefore, as Dragflation continues, affordability constraints will increase for potential buyers and with prices falling, current homeowners will become reluctant to sell at reduced prices.
On the upside, there will come a time when we forecast that the housing market will hit bottom and mortgage rates will decline, when it will become an advantageous time to again invest in real estate… so stay tuned!