According to a recent study, the percentage of Americans who think that the present is a good time to purchase a home has fallen to an all-time low.
In a recent Gallup survey, just 21% of respondents said that it is a good time to purchase a home, down 32% from 2021 and nine points from the previous year.
Between 1978 and 2021, at least half of those surveyed said that now was a good time to purchase a home. However, 78% of those surveyed felt that 2023 was a horrible time.
Gallup writes, “Opinions about the housing market are dim and tend to be similar among all of the major subgroups, which includes by region, urbanicity, being a homeowner, financial status, schooling, and party identification as well.” This statement explains how Americans across a range of economic categories have become pessimistic about purchasing homes.
Americans have become more gloomy, the analytics company continues, “as the cost of housing have risen dramatically and the Federal Reserve has increased interest rates in an attempt to tame inflation.”
56% of respondents also anticipate an increase in their house value over the next several years, compared to 25% who predict a hold-stable value and 19% who predict a decline.
70% of respondents indicated they anticipated local property prices will increase in 2022, while 18% predicted they would remain the same and 12% said they would fall.
In the 2023 survey, respondents from the Midwest and rural areas were less likely to anticipate a rise in their house prices. Only 45% of people in the Midwest agreed, compared to 55% of people in the West, 61% of people in the South, and 62% of people in the East who anticipated their property prices will increase.
Only 45% of respondents in rural areas anticipate a rise in property values, compared to 57% of suburban residents and 64% of city dwellers.
A random sample of 1,013 respondents in the United States participated in the Gallup survey, which was conducted between April 3 and April 25.