- Fewer Americans than ever before believe now is a good time to buy a house.
- Only 21% said it’s a good time, a fresh record low, down from 30% in 2022, a Gallup poll found.
- High mortgage rates and low inventory continue to challenge homebuyers.
Americans have never been more pessimistic than now about buying a home, according to recent Gallup poll.
Only 21% of those surveyed in April said now is a good time to buy a house, a fresh record low. That’s down from 30% in 2022 and 53% in 2021.
Up until last year, the poll has seen at least half of Americans respond favorably about buying, ever since it began asking the question in 1978.
“It is likely that Americans’ pessimism about homebuying reflects the high prices and high interest rates that are conspiring to make mortgage payments less affordable,” Gallup said. “These attitudes may keep many prospective homebuyers out of the market.”
The steep, two-year decline in sentiment comes after mortgage rates climbed last year to 7% for a 30-year fixed mortgage on the back of aggressive Federal Reserve tightening policies. Meanwhile, thin housing inventory and lack of willing home sellers has kept prices high and affordability low.
At the same time, a smaller share of Americans expect home prices will increase, with 56% saying home values in their area will rise in the coming year. That’s down from 70% in 2022 and 71% in 2021.
Analysts also have mixed perspectives, with little expectations for major price or mortgage shifts. However, Pantheon Macroeconomics’ Ian Shepherdson recently forecast a price drop of 15% if the US falls into a recession this year.
Despite the prevailing pessimism towards the housing market, a separate Gallup poll previously found that real-estate continues to be Americans’ leading choice for long-term investing. However, this has also decreased from prior years.
