Consumer attitudes toward selling a home have taken a significant downturn in recent years, according to a study released by the Mortgage Bankers Association (MBA).
Investigating consumer sentiment with regards to the real estate market, the research was based on 30 years of real estate data. Professor Gary Engelhardt of Syracuse University conducted the study, sponsored by the MBA's Research Institute for Housing America.
Engelhardt reports a dramatic decline in the outlook towards selling a home, noting positive sentiment ranged from 40 to 60 percent in the years leading up to 2005, but reached lows of 7 percent in the following years. He expects this state of affairs to continue in the short term, due to home seller price expectations and circumstances. There is a more favorable view of buying, however.
"Despite high unemployment and slow economic growth, the bulk of American households believe that now is a good time to buy a home," said Engelhardt. "Positive sentiment towards home-buying is strong particularly among young, educated, white and Hispanic households, and is attributable to low house prices and low mortgage interest rates."
He noted the pattern of home-buying sentiment resembles that witnessed during previous recessions, decreasing when employment falls. Similarly, improvement seems to occur when job creation strengthens and housing affordability increases.
Engelhardt predicts homebuying sentiment will stay positive for the time being, in keeping with MBA projections.