What a difference a couple of seasons can make.
This spring, confidence in the housing market was riding high, according to a monthly survey by Fannie Mae.
And yet, that same survey shows clear and worrying signs right now, particularly for home sellers.
Specifically, the survey reports that sentiment about buying a home dropped a sizable 5%. Currently, only 21% of Americans think now is a good time to buy.
This is tied for the survey’s second-lowest reading in history, and it echoes other reports that fewer people think owning a home is currently a good investment.
What changed so dramatically since spring?
Well, expectations about the economy continue to be positive.
Home prices continue to rise, although those gains are shrinking by the day.
The real culprit seems to be mortgage rates, which have shot up to seven-year highs.
Combined with high home prices, rising mortgage rates are impacting home affordability and are chasing home buyers away. As proof, mortgage applications are down 16% nationwide from a year ago.
And this is unlikely to be just a temporary blip. The Fannie Mae survey indicates fewer people believe mortgage rates will go back to recent lows.
So what does this mean for you?
Put plainly, if you’ve been considering selling your home, then the time to act is now.
The Fannie Mae survey is a definite warning alarm. But the good news is, I’m still seeing a lot of interest and demand around the Northern Colorado area, and local inventory remains low.
This means if you list your home now, you’ll still have a great chance of achieving a top price and selling quickly.
However, once the nationwide trends I mentioned above start affecting us around Northern Colorado, it’s likely that demand will drop, homes will take longer to sell, and we will slowly enter a buyer’s market.
If you’re interested in getting the process rolling before this happens, you can get an idea of what your home is worth in the current market with this home value calculator, which is based on recent Northern Colorado sales:
Enter your home address here to find out what your home is currently worth
And if you have any questions, or want to discuss how housing sentiment is changing in Colorado, give me a call. I’m here to help.