More than half of Americans think it’s a bad time to buy a home

Although spring is one of the most anticipated seasons to buy a home, most people in the U.S. say that it is not a good time.

According to a Gallup poll, only 21% of people believe it is a good time to buy a home, out of 1,000 respondents, a low number since the survey was conducted in 1978.

“Opinions about the housing market are bleak and generally similar among all major subgroups, including by region, urbanicity, homeownership status, income, education and party identification,” Gallup said in its survey results.

“Fewer Americans now than ever believe it is a good time to buy a home.”

The pollster notes that the negative view of home prices is due to increases over the past two years and mortgage interest rates.

This has made buying a home an increasingly distant dream for millions of people in the United States.

The median home price was $436,800 during the first quarter of 2023 according to data from the Federal Reserve Bank of St. Louis.

This is comparable to $433,100 in 2022 and $369,800 in the first quarter of 2021, while economists say prices are rising because there are not enough homes ready to meet the demand.

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In addition, fear has increased among homeowners who stopped selling their properties for fear of buying another home with higher mortgage rates.

The Federal Reserve continues to try to slow inflation by raising interest rates, which has increased mortgage rates.

The average interest rate on a 30-year loan reached 6.35% in the second week of May, according to Fed data, in contrast to 5.3% in 2022 and 2.94% in 2021.

The measures implemented by the Federal Reserve have caused auto loans and credit card rates to rise.

“Because it’s so expensive to borrow money, demand for homes is decreasing and sellers are adjusting prices to meet the speed of the market,” said Peggy Olin, chief executive officer of real estate brokerage firm OneWorld Properties in Florida.

Spring this year will likely have a lower rate of home sales and a change in prices “because people are less confident in the market and less able to buy homes,” Olin told CBS News.

With information from CBS News

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