The share of renters in the last quarter of 2017 who believe now is a good time to buy a home dropped to 60 percent from 62 percent in the third quarter, although just 57 percent looked positively on homeownership in the fourth quarter of 2016, according to the National Association of Realtors Housing Opportunity and Market Experience survey.
The most optimistic about home buying are current homeowners, the survey stated. Seventy-nine percent of homeowners look favorably upon home buying, compared with 80 percent in the third quarter.
Doubt surrounding homeownership is likely coming from low inventory levels and weaker affordability conditions, said NAR Chief Economist Lawrence Yun in a statement.
“The trifecta of faster economic expansion, robust hiring and low mortgage rates should be generating a surge in optimism and home sales as 2017 winds down,” he said. “Sadly, this is not the case. While overall demand remains high, it is not translating to meaningful sales gains. Too many prospective first-time buyers see few options within their budget and home prices that are rising much faster than their incomes.”
