Is now a good time to buy a house? Most Americans don’t think so, Gallup says

Americans still dream of owning a home, but rising prices make them pause.

Markets ended lower on Friday after falling on Thursday, with the Dow Jones Industrial Average DJIA
the S&P 500 SPX,
and the Nasdaq Composite COMP,
they all lost gains after Wednesday’s Fed rally.

A new Gallup poll found that only 30% of Americans believe now is a good time to buy a home. This is the lowest level since Gallup began surveying Americans on this issue in 1978, and this is the first time less than 50% of people across the country have thought it was a good time to buy. .

In other words, even at the height of the foreclosure crisis in the midst of the Great Recession, at least 50% of Americans thought it was the right time to buy a home. But today, with rising house prices and mortgage rates, people are increasingly concerned about taking the plunge.

“The much more negative assessments of Americans about the current housing market may also prevent them from looking to buy, which could lead to a slowdown in home sales,” Gallup said in the report. “If that happens, it will reduce the demand for housing and could lead to a decline in the value of homes.”

The Gallup survey found that attitudes towards buying a home grew more pessimistic in all regions of the country and in all subgroups, both among tenants and landlords. The largest drop occurred among suburban residents. Last year, 60% of those residents said it was a good time to shop, compared to just 27% of Gallup’s April survey.

Young adults were more likely to have a negative outlook on buying a home. Only 25% of people between the ages of 18 and 34 believe that the time is right to become a homeowner.

The growing pessimism of Americans towards the housing market is the hope that house prices will continue to rise. Gallup reported that 70% of respondents said they expect the average price of homes in their area to rise over the next year, compared to 18% who expect them to stay the same and 12% who believe it will go down.

While most people expect home ownership to be a more difficult goal to achieve, Americans still tend to see it as the best long-term investment. Nearly half of Gallup respondents (45%) said real estate was the best long-term investment, while 24% said stocks and 15% said gold.

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