Is now a good time to buy a home? Rising home prices and a sluggish labor market have made that question more difficult for Americans in recent years. In fact, many people now have a negative view of the real estate market. However, as any real estate agent will tell you, location still plays a major role in the buying process.
Homebuyers are losing their enthusiasm for the housing market. According to a new survey from Fannie Mae, the share of consumers who say now is a good time to purchase a home declined for the second consecutive month in August. Only 64 percent of respondents believe buying a home in the current market is a smart decision, down six percentage points from June and tied for its lowest reading on record. The share who say they would buy if they were going to move fell to 64 percent, while the share who would rent increased to 32 percent, representing the narrowest gap in over a year.
“The August National Housing Survey results lend support to our forecast that 2015 will likely not be a breakout year for housing,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The deterioration in consumer attitudes about the current home buying environment reflects a shift away from record home purchase affordability without enough momentum in consumer personal financial sentiment to compensate for it. To date, this year’s labor market strength has not translated into sufficient income gains to inspire confidence among consumers to purchase a home, even in the current favorable interest rate environment.”
Let’s take a look at the top 10 markets for homebuyers in the nation’s largest metro areas, according to a recent ranking from Zillow, which based results on several factors, including days on the market, frequency of price reductions, and the number of homes sold below listing price.
10. Jacksonville, Florida
9. Cincinnati, Ohio
8. New York/Northern New Jersey
7. Tampa, Florida
6. Pittsburgh, Pennsylvania
5. Chicago, Illinois
4. Milwaukee, Wisconsin
3. Philadelphia, Pennsylvania
2. Cleveland, Ohio
1. Providence, Rhode Island
Follow Eric on Twitter @Mr_Eric_WSCS