Kentucky REALTOR® Confidence Rises In November
House price growth to moderate as market continues to turn buyer-friendly
Kentucky REALTORS® expect an increase in sales volume in the next year even as the market continues to turn buyer-friendly, according to the November 2021 edition of the HousingIQ Survey of Kentucky REALTORS®.
- 57% percent expect an increase in sales volume in the next twelve months
- 32% anticipate an increase in foot traffic in the next twelve months
- 52% expect houses to stay on the market for longer in the next twelve months
- 45% expect greater price-cutting by home sellers in the next twelve months
“We will get much needed supply as some homeowners take advantage of the recent price appreciation and list their properties, ” said Vidur Dhanda, author of the survey. “Additionally, with the end of forbearance, homeowners struggling with mortgage payments would also prefer selling their homes and cashing in their increased home equity.”
In the latest issue of the Home Purchase Sentiment Index, which tabulates national consumer sentiment, Fannie Mae reported that consumers expressed “their greatest economic pessimism in 10 years.” However, overall housing sentiment was largely unchanged.
36% of the Kentucky REALTORS® reported that buyers were holding back because of concerns about the economy, with 82% saying that buyers were not rushing to beat mortgage rate increases.
Dhanda continued: “A combination of concerns about the economy and affordability challenges exacerbated by sustained appreciation in home prices over the last 18 months will temper homebuyer enthusiasm. Price cutting by sellers will further moderate house price appreciation.”
Based on the monthly survey data, the HousingIQ/Kentucky REALTORS® Confidence Index provides a composite measure of expectations for the Kentucky housing market over the next year.
The HousingIQ/Kentucky REALTORS® Confidence Index jumped over five points to 44.3 from last month. A value of 100 corresponds to all respondents agreeing that market conditions will improve, while 50 corresponds to respondents anticipating no change in market conditions.
The Price Expectation sub-index jumped over seven points to close at 66.9. The Buyer Power sub-index decreased over four points to 62.5. The Homeowner Stress sub-index also improved by nearly four points.
Year-over-year, the headline index is down two points, and price expectations are unchanged. From a year ago, the market has become more buyer-friendly, and the multitude of programs designed to prevent a foreclosure crisis have been largely successful. Compared to a year ago, buyer power has improved by over ten points as homeowner stress has dropped five points.
The survey results are available here.