For the first time in a long time, Americans are feeling better about selling a home than buying one. On Friday, consumer sentiment data showed the index for consumers who said it’s a good time to sell a house is now above those who said it’s a good time to buy a home.
The index of American consumers who said it was a good time to sell a home was at 70 in August and September, while the index for those who said it was a good time to buy a home was 69 in August and 68 in September.
Overall, Americans’ optimism toward selling a house has risen sharply since the recession in 2007-2008, while their view toward buying a home has stayed the same over the course of the recent economic expansion. In addition, the index dropped 11.69% in September from an index level of 77 in January, 2016.
“American consumers’ growing confidence in their ability to sell a home is part of an underlying trend in the housing market: tight inventory and fast-rising prices.” said Keith Knutsson of Integrale Advisors.
If the U.S. real estate market is to continue the sales pace in September, it would take approximately 4.2 months to exhaust the supply of homes on the market. This estimate is lower than the 4.5 months predicted a year earlier. According to the U.S. Commerce Department, housing starts fell 4.7% in September. In the same month, sales of previously owned homes declined on an annual basis for the first time since July 2016. Furthermore, this is a result of the shortage of homes on the market.