Home Consumer Confidence Hits New All-Time Low - RISMedia

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The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased 4.1 points in October to 56.7, its eighth consecutive monthly decline and the lowest reading since the index began in 2011. Year-over-year, the index is down 18.8 points.

The HPSI found that the proportion of respondents who said it was a good time to buy a home fell from 19% to 16%, while the proportion who said it was a bad time to buy rose from 75% to 80%. As a result, the share of those who said it was a good time to buy fell by 8 percent month-on-month.

Additionally, the report stated that the percentage of respondents who said it was a good time to sell a home fell from 59% to 51%, while the percentage who said it was a bad time to sell rose from 33% to 42%. The share of those who said it was a good time to sell fell 17 percent month-over-month.

Key requirements:

Those who see house prices rising in the next 12 months fell from 32% to 30%. The share of those saying home prices will rise fell 4 percent month-over-month.
Those who see that prices will rise rise from 35% to 37%.
6% see that house prices will fall in the next 12 months, down from 9% last month. The majority of those who expect house prices to fall in the next 12 months fell by 4 percent MoM.
65% feel that house prices will rise, an increase from 64% last month. Those who think house prices will remain the same rose from 20% to 24%.
The number of people who say they are not concerned about losing their job in the next 12 months has increased from 78% to 85%. The share of those who are not concerned about their work increased by 13 percent MoM.
Meanwhile, the number of people who say they are worried has dropped from 21% to 15%.
26% feel household income is higher than 12 months ago, an increase from 25% last month. The share of those who say household income is too high fell by 5 percent MoM
15% feel that household income is too low, an increase from 11% last month. The number of people who say household income is equal has dropped from 61% to 60%.

Main dish:

“The HPSI reached its all-time high this month, consistent with expectations that the housing market will continue to cool in the coming months,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “Customers are becoming more optimistic about buying and selling real estate. Amid rising house prices and low interest rates, the ‘bad time to buy’ share has risen to new levels in a new survey this month, while the ‘good time to sell’ share continues to decline. Buyers are also concerned about the movement of house prices – expectations that prices will fall came to an increase in new surveys, especially among homeowners – providing additional support to our forecast of falling house prices in 2023. Not wanting to sell at low prices, we expect house sales to slow down significantly in the coming months. , consistent with our predictions. “

For the full report, Click here.

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