The share of adults in the U.S. who say now is a good time to buy a home has dropped to its lowest level in 45 years, with nearly eight in 10 people responding negatively to current market conditions, according to a recent Gallup survey that is part of its annual Economy and Personal Finance poll. The current $375,700 median price for an existing home is down 0.9% from last March, the largest drop since January 2012.
Still, rising mortgage rates are chipping away at homebuyer sentiment and freezing existing demand. Slightly more than half of the survey’s respondents said they believe home prices in their area will increase, and while that’s a dip from last year’s share of 70%, it reveals lingering hesitation among a more budget-conscious buyer pool, MarketWatch reports.
The last time Americans felt so negatively about home-buying was in 2022, Jeff Jones, senior editor at Gallup, told MarketWatch.
“Historically, when people answer the question, they’re partly responding to the current housing market and home prices and interest rates, but also, to some degree, the long term benefits of owning a home,” Jones said. “But these last two years, we’re seeing the opposite — people are a lot more negative.”