Kentucky REALTORS Housing IQ survey shows possible drop in asking prices, longer time on market

Seventy-three p.c of Kentucky REALTORS® anticipate sellers to drop their asking value, whereas eighty-nine p.c anticipate homes to remain in the marketplace for longer, in keeping with the July 2022 version of the HousingIQ Survey of Kentucky REALTORS®.

“Larger charges, inflation, and uncertainty concerning the total economic system is weighing down consumers. 25% of the survey respondents reported that a few of their consumers had canceled their contracts whilst 47% reported that some sellers had reduce their asking value by greater than 5% within the final three months. Wanting forward, 47% of the respondents anticipate home costs to fall over the following twelve months,” stated Vidur Dhanda, survey writer.

Within the newest Residence Buy Sentiment Index challenge, which tabulates nationwide shopper sentiment, Fannie Mae reported that the index had dropped to its lowest stage since 2011.

Solely 17% stated it’s a great time to purchase a house.

Moreover, the proportion of customers believing it’s a great time to promote dropped almost 10 factors from Could to 67% in July.

The Mortgage Bankers Affiliation reported that the nationwide weekly Buy Index was 19 p.c decrease than a 12 months in the past.

“Though, the current improve in stock has supplied consumers a lot wanted aid, the drop in new listings and a slowdown in new building will proceed to maintain stock tight and stop drastic value drops.” Dhanda stated. “Sellers, nevertheless, will should be extra versatile. 65% of the respondents anticipate a higher variety of homes to promote beneath the asking value.”

COMPARED TO A YEAR AGO

• 47% anticipate home costs to fall—a 20-point improve

• 89% anticipate homes to remain in the marketplace for longer—a 29-point improve

• 73% anticipate higher price-cutting by dwelling sellers—a 24-point improve

• 59% anticipate a lower in foot site visitors—a 44-point improve.

Primarily based on the month-to-month survey knowledge, the HousingIQ/Kentucky REALTORS® Confidence Index offers a composite measure of expectations for the Kentucky housing market over the following 12 months.

The HousingIQ/Kentucky REALTORS® Confidence Index continued its 5-month decline to shut at 27.

In comparison with a 12 months in the past, the headline index is 11 factors decrease and near its studying firstly of the pandemic.

A price of 100 corresponds to all respondents agreeing that market circumstances will enhance. In distinction, 50 corresponds to respondents anticipating no change in market circumstances.

The Worth Expectation sub-index additionally continued its 5-month decline and is eighteen factors decrease from a 12 months in the past, reflecting expectations of dwelling value decreases. The Purchaser Energy sub-index gained 3 factors and is eighteen factors greater than final 12 months, indicating the continued shift in direction of a purchaser’s market. The House owner Stress sub-index decreased 1 level and is 3 factors decrease than a 12 months in the past.

The survey outcomes can be found right here.