Home Purchase Sentiment Index - Fannie Mae | Jared Jones
How good/bad time is it to buy & sell homes now?
What happens to the housing market then Fannie Mae has just released their latest home purchase sentiment index. And it tells us a lot about how sellers feel about the economy right now. And it's also not really based in the reality of what the economy's doing. So here's the point. The index tells us right now, the sellers feel like it's still not the best time to sell. Now that went into the floor. That sentiment of it's a time to sell when obviously the entire States were locked down and COVID was a big concern, but it's really not sprung back to the same degree that it was before yet.
Whereas buyer sentiment on the other hand has gone past what it was before. COVID meaning that the sentiment of how good it is to buy right now, buyers feel like it's an even better time than before. COVID what that tells us is obviously interest rates are low buyers excited. It creates a little bit of urgency, but at the same time, every time the market changes and interest rate drop, there's a correlating price increase and it's really fast. So the price comes down to 1%. The market will usually jump about 10%. So there's a correlation between interest rate and price. They're tied together. So effectively what's happened now is buyer. Sentiment is really high, but seller sentiment is not matching it, which in turn shows us what's going on in central Florida, where buyers are actually pending and taking properties down to contract faster than they're actually hitting the market because sellers are concerned.
What are sellers concerned about? Well, there's a sentiment still underlying that I may lose my job. I may not make as much as I used to with those sentiments still built into the market. The market is going to have a hard time getting enough supply into it for the amount of people that want to buy. We are experiencing a bubble right now. You can still sell at record numbers, and there's going to be a lot more factors. I'm going to share with you this week on what's going to drive all those trade offs, but right now there's just not enough supply period. Not across all market segments. We'll talk about this week.
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