Rising home prices are making it hard for people to buy, and most Americans think now is the time to wait. A new Gallup poll found only 30% of Americans believe now is a good time to buy a house. It’s the first time less than 50% of people across the country thought it was a good time to buy.
With home prices and mortgage rates rising, and a limited supply of housing, people are concerned. Americans’ negative assessments of the current housing market may also keep them from looking to buy, which could lead to a slowdown in home sales. If that happens, it would reduce the demand for houses and could lead to a decline in home values.
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Mean sale prices of U.S. homes are at a record $428,000. In the early 2000s, U.S. homeownership reached an all-time high and a record 81% said it was a good time to buy a house. By the mid-2000s, housing prices rose sharply and created a housing ‘bubble’ that led to a market crash.
As mortgage rates were low and housing values recovered in 2014, 74% said it was a good time to buy. That confidence waned in recent years — dipping to 50% in 2020 and 53% a year ago before cratering this year — as housing prices continued to rise amid limited supply and high demand.
According to the poll, most Americans believe housing prices will continue to increase, with 70% predicting they’ll increase over the next year, even though higher interest rates mean prospective homebuyers will have to stretch themselves to make higher mortgage payments or settle for a less expensive house.
The survey was conducted April 1-19.
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