I Regret Buying My House...

"I regret buying my house...."

Hey gang, so apparently more than three fourths of buyers who purchased in the years since the pandemic expressed regret about their decision....

 


Buyer sentiment across the board is low. And who can blame them? Even those buyers "lucky enough" to have bought during the post-pandemic market have regrets, not to mention the buyers waiting on the wings (whether by choice or by not qualifying with these crazy rates...)

 
30 and 15 year fixed rates




What's most alarming is the amount of new buyers coming to the market. I'm going to show you a chart that you're going to need to sit down before you see...




























are you sitting down?



































































 
MBA Purchase Applications Index


This chart shows the volume of mortgage applications going back over 30 years.

You can see by the dotted line that we're already at the same volume we were at the bottom of the 2008 crash. 

So what does that mean? 

Fewer buyers are applying for mortgages, which means fewer buyers are active in the market searching for homes. 

Here's another humdinger...


 
Buying vs Renting
 



This chart shows the cost of owning (yellow) vs. renting (green).

Going back as far as the 80s, the two lines have stayed pretty similar with the exception of the housing bubble of the early 2000s. 

But since the pandemic, the cost of owning has far outpaced the cost of renting.

FannieMae regularly conducts a national housing survey they call the HPSI which stands for Home Purchase Sentiment Index. They poll people on how many people think it's a good time to sell, and how many people think it's a good time to buy.

As you can see by the dark blue line in the chart below, only 19% of people think it's a good time to buy a home:



 
And can you blame them?

What incentive do most buyers have to jump into a crazy market, with home values on the decline, rising interest rates, and the "buzz" among recent homebuyers being overwhelmingly negative?



 


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Oh, were you waiting on me to give you an answer? because unfortunately I don't have one :o]


I think it's going to be tougher for sellers the rest of this year and into the next. The main thing propping up prices so we're only experiencing a minor decline, is the low inventory.

Low inventory caused by stubborn sellers who aren't being forced to sell.... yet.

In an upcoming market update I'll go into where I believe the next surge of inventory is coming from, so stay tuned.


that's all for now folks!

my promise to you each and every week is to act as your personal assistant and help you understand what's happening in the world of real estate.

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