While mortgage rates are in a downturn, a new survey finds most Americans complaining that elevated home prices are keeping them out of the housing market.
The survey of 1,003 adults conducted on March 2 by HomeServe, a leading residential infrastructure repair solutions company, found nearly two-thirds of respondents (62%) were aware that mortgage rates fell below 6% for the first time since 2022. On the plus side, nearly six in 10 (59%) said that news made them feel more positive about the housing market.
But while nearly half of respondents (48%) said mortgage rates below 6% makes them more likely to consider buying a home in the next 12 months — with 23% saying significantly more likely – 61% of respondents stated that home prices being too high was their biggest barrier to buying. And nearly half of current homeowners (47%) said they’re staying put because they already locked in a very low mortgage rate.
“Our research shows the math on buying a home simply doesn’t work for many Americans yet, and it’s a reminder that the purchase price is just the beginning,” said Myles Meehan, HomeServe’s senior vice president of public relations. “The ongoing costs of maintenance and unexpected repairs are a major part of the homeownership equation. For buyers stretching their budgets in this market, having a way to manage the financial uncertainty of a sudden repair is a crucial piece of the puzzle for achieving true peace of mind as a homeowner.”
Agree, sellers are living in the past, and everyone thinks their home is the Taj Mahal!
The flippers/investors have hurt the first-time buyers. They fix up a home and then try to flip it for 2-3X acquisition amount. Also, Realtors tell sellers to remodel or update for best exposure and then the seller has all that cost added. Buyers are now used to going in turnkey, never any cosmetic costs to them as the new homeowner. It has been this way for years. Prices go up, of course.
And I agree on the flippers/Investors. That needs to change. They need to reform the capital gains laws were older people payless or not at all, and these flippers/investors pay more when they sell. This could open up more inventory and normalize the market
Where do the investor/flippers find the homes they buy. They sure aren’t listed on MLS. If you want to buy a starter home and do the work yourself, even if you have the cash, you can’t find these homes.