As a result, many buyers are choosing to take a more cautious approach when considering their next purchase. The primary buyers in the real estate market are households, and a recent survey has revealed that this group has a slightly negative outlook on the future of the market.
The National Mortgage News conducted a study to gauge the attitudes of 500 Americans who are looking to purchase residential properties within the next two years. The study found that households in the U.S. have a slightly negative outlook on the future of real estate markets. Only 10% of those surveyed said that they were “very positive” about the prospects for the market, while 32% were “neutral” and the remaining 58% were “slightly negative”.
This negative sentiment is likely due to a combination of factors, such as rising mortgage rates, increasing housing costs, and market uncertainty. The survey also revealed that the majority of buyers were primarily looking to purchase single-family homes as an investment, rather than as a primary residence. This suggests that many households are taking a more conservative approach to purchasing properties, despite believing that real estate markets may decline in the near future.
The survey also found that many buyers are still feeling the effects of the 2008 financial crisis. There was a deep distrust of lenders and banks among those surveyed, with 35% saying that lenders and banks have too much power in the market. Additionally, many buyers were uncertain about how changes in government regulations would affect the market.
Overall, the survey suggests that households have a negative outlook on the future of the real estate market, with many buyers taking a more cautious approach due to the current economic climate. This is likely due to a combination of factors, including rising mortgage rates, increasing housing costs, and market uncertainty. Many buyers appear to be viewing single-family homes as an investment, rather than as a primary residence, as they look to protect themselves from the potential risks of the market. In addition, there is still a deep distrust of lenders and banks, with many buyers uncertain about how government regulations might affect the market. Although the outlook may be slightly negative, it is still important for buyers to do their research before making a purchase.
This article was contributed on Oct 16, 2023
