An alarming drop was noted with only 56% of participants expecting an uptick in property values within their locality over the ensuing year from that time onwards compared to last year’s response which was at an optimistic high of roughly seventy percent (70%).
People are clearly unhappy about America's current housing market situation – but what's driving this sense of discontent? One plausible factor is undoubtedly how much it costs to buy property nowadays.
In fact, the latest data indicates that by Q4 2022 mean home sales prices had shot up and surpassed previous heights at around $479,500. The result? A growing number of folks struggling to attain homeownership due to financial barriers beyond their control.
The Federal Reserve's battle against inflation through higher interest rates might influence Americans' bleak attitude toward the housing market. In essence, many rate increases have made borrowing money pricier which can lead to obstacles when striving for homeownership.
One notable complication is that home sales are expected to decrease as a result. Moreover, this mindset makes moving more challenging and ultimately harms overall economic growth.
The bleak perception of the real estate sector highlights the hurdles that are looming over America's economic landscape. Therefore, it's paramount to keep tabs on this mindset and proactively tackle its root causes.
Here are some additional details from the Gallup poll: