Latest survey of real estate agents indicates buyers rush to beat interest rate hikes as prices moderate

According to the January 2022 edition of the HousingIQ survey of Kentucky realtors, two in five Kentucky realtors say buyers are racing to beat mortgage rate hikes while realtors’ expectations for price growth housing continues to moderate.

Compared to a year ago:

• 42% expect house prices to rise – a drop of 16 points
• 45% expect homes to stay on the market longer – an increase of 23 points
• 31% expect more price reduction from home sellers – an increase of 14 points
• 30% anticipate an increase in foot traffic – down 14 points

“As mortgage rates rise, buyers who are already in the market are accelerating the process,” said Vidur Dhanda, author of the survey. “Going forward, economic volatility and rising rates will deter buyers and curb house price growth. 39% of survey respondents said buyers were holding back due to concerns about the economy, although 44% said buyers were rushing to beat rate increases. »

In the latest issue of the Home Buying Sentiment Index, which tracks national consumer sentiment, Fannie Mae reported a record survey 25% of respondents said now was a good time to buy a home. home, compared to 52% a year ago.

The Mortgage Bankers Association reported that the national weekly purchase index was 12% lower than a year ago.

35% of Kentucky real estate agents said sellers are signing up in anticipation of a cooling market. Fannie Mae reported that 69% of consumers nationwide said now was a good time to sell.

“The owners’ ability to sell is limited by low inventory,” Dhanda said. “Very often the sale is lifestyle or job oriented and requires a corresponding purchase. We need more construction and there are early indications of an increase.

Based on monthly survey data, the HousingIQ/Kentucky REALTORS® Confidence Index provides a composite measure of expectations for the Kentucky real estate market over the next year.

the HousingIQ/Kentucky Realtors Trust Index rose two points from a month ago to close at 47. A value of 100 corresponds to all respondents agreeing that market conditions will improve. On the other hand, 50 corresponds to respondents who do not anticipate any change in market conditions.

The Purchasing Power sub-index lost six points and the Price Expectations sub-index fell two points. The homeowner stress sub-index continued to improve to close the month at 67.

The overall index is down four points from a year ago, with price expectations down seven points. Compared to a year ago, purchasing power has jumped 16 points and owner stress has improved by nine points.

The results point to a market where price appreciation is slowing as buyer enthusiasm wanes.

The survey results are available at

Kentucky HousingIQ Realtors

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