HousingIQ Survey: Kentucky Housing Market Starts Year On Strong Note
Buyers grapple with affordability as homeowners confront financial uncertainty
By: HousingIQ by WAIN Street
"This is a market that is being buoyed by low interest rates and sustained by lack of inventory," explained Vidur Dhanda, author of the survey. "The elephant in the room is the end of mortgage forbearance. The recent increase in housing wealth does provide a cushion, but the impact of the uneven recovery and potentially permanent changes to the economy should temper our expectations."
The headline HousingIQ/Kentucky REALTORS® Confidence Index was nearly flat at 46.3. A three-point increase in the Price Expectation sub-index and nearly five-point increase in the Homeowner Stress sub-index reflects the current state of the market – a fundamentally strong market that will likely absorb any financial fallout.
With slightly over half the respondents expecting higher prices, nearly one-third anticipating fewer price reductions, over a quarter expecting houses to stay on market for longer, and two out of five respondents expecting greater foot traffic in the next twelve months, Kentucky REALTORS®collectively anticipate a strong market albeit with subdued price gains.
Sixty-two percent of the respondents expect increased sales to distressed property investors. "As consumers come to terms with the economic impactof the pandemic, distressed sellers should reach out to their local REALTORS®. They are a part of the local community, vested in local success, and have access to resources that the typical consumer lacks," said KYR Communications Director, Paul Del Rio.
Sixty-eight percent of the respondents expect increased interest from out-of-state buyers. "As Kentucky continues to attract buyers from other parts of the U.S., REALTORS®, equipped with their local knowledge and network of service providers, are an invaluable resource for distant buyers," said KYR CEO, Steve Stevens.
Thirty-nine percent of the respondents foresee an increase in the number of homebuyers opting to rent. "Affordability continues to be a concern. However, it is disheartening to see so many give up on the wealth-creation benefits and joys of homeownership. I would urge everyone to consult with a local market expert." added KYR President, Charles Hinckley. "REALTORS®have experience with various ways to help buyers qualify and secure the qualifications needed to purchase a home."
The full report is available here: https://housingiq.wainstreet.com/