More Americans believed the first quarter was a good time to buy a home compared with the previous quarter, according to a survey by the National Association of Realtors (NAR).
Thirty-seven percent told NAR that they strongly believe now is a good time to buy, up from 34 percent in the last quarter of 2018 but down from 38 percent one year ago.
Thirty-five percent of respondents told NAR that now is not a good time to buy a home, compared with 37 percent in 2018’s fourth quarter.
“First, inventory has been rising, so those buyers interested in making a purchase will not be limited in choices,” NAR Chief Economist Lawrence Yun said in a release. “Additionally, more stable home price trends are leading to more foot traffic at various open house gatherings.”
According to the survey, 53 percent of respondents said that the economy is improving, down slightly from 59 percent at the end of last year. NAR said optimism is the greatest among those who earn $100,000 or more and those who reside in rural areas.
Sixty-one percent of respondents said they think home prices in their communities have increased over the last 12 months, down from 63 percent in 2018’s fourth quarter. Thirty-one percent said prices within their community had remained the same, unchanged from a year ago.
Additionally, 43 percent of respondents told NAR they expect prices in their communities to stay the same over the next six months, up 2 percent from last quarter. However, 47 percent believe prices will rise in the coming six months, while 10 percent believe prices will drop in the next six months.
Yun said mortgage affordability in the first quarter has been more favorable than it has been in recent quarters.
“The Federal Reserve’s decision to refrain from any foreseeable rate hikes was beneficial to potential buyers,” Yun said. “That move directly contributed to mortgage rates declining in quarter one, which provided a second-chance opportunity to those looking to buy who were priced out last quarter.”