Renters suddenly say now is great time to buy a home
Renters showed a substantial growth in optimism in September, saying now is a good time to buy a home, according to Fannie Mae’s Home Purchase Sentiment Index.
Renter’s shift to saying now is a significant change from August, when Americans agreed it was the right time to sell, but not to buy a home.
Overall, the index increased 0.3 points in September to 88.3, matching the all-time high set in June. The increase is due to a rise in three of the six HPSI components.
The component which measures the share of those who saying it’s a good time to buy posted the highest monthly increase, rising 10 percentage points from August to 28%, reversing the past couple months of downward trends.
“The biggest driver for the increase in the HPSI is the rebound in the good time to buy sentiment, which outweighed the largest drag, a sizable reduction in the net share of consumers expecting home prices to rise over the next year,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “Details in the survey showed a meaningful pickup in the good time to buy component, especially from the renter respondents.”
“Additionally, perceptions of easing inventory helped boost the net share saying that now is a good time to buy, which is consistent with less bullish home price appreciation sentiment during the month,” Duncan said. “Overall, we believe that the devastating impacts of the hurricanes will likely weigh on home sales in coming months, posing downside risks for our forecast, which already calls for only a modest gain in home sales this year.”
And even some experts are beginning to say now is the time to buy. As summer fades into fall, Realtors in the Northwest area explained now is the perfect time to buy a home since housing inventory will begin to reach its peak levels in October, according to the latest report from Northwest Multiple Listing Service.
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