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Kentucky Housing Market At Tipping Point
Economic concerns and rising rates weigh on buyers say Kentucky REALTORS®
COMPARED TO A YEAR AGO
-- 38% expect house prices to fall—a 26-point increase
-- 77% expect houses to stay on the market for longer—a 50-point increase
-- 61% expect greater price-cutting by home sellers—a 35-point increase
-- 41% anticipate a decrease in foot traffic—a 32-point increase
"The market is at a tipping point. Homebuyers face three challenges—higher house prices, higher mortgage rates, and concerns about the economy. 50% of the survey respondents said some of their buyers had dropped out of the market because of higher mortgage rates while 41% expect a decrease in foot traffic," said Vidur Dhanda, survey author. "Sellers are trying to get in front of the market slowdown with 61% of the respondents expecting increased price cutting by sellers. However, that might not be enough for some buyers."
In the latest Home Purchase Sentiment Index issue, which tabulates national consumer sentiment, Fannie Mae reported that a survey-high 79% of respondents said it's a "bad time to buy" a home, as the headline index inched nearer to its April 2020 low.
The Mortgage Bankers Association reported that the national weekly Purchase Index was 21 percent lower than a year ago.
Dhanda continued: "We have been reporting increased investor activity for the last several months. 38% of the survey respondents said that investor activity had picked up in the last three months and 43% expected increased sales to investors. As buyers get priced out, investors will strategically add to their portfolios as long as the rental market stays strong."
The complete report is available here: https://housingiq.com/