LEXINGTON, Ky. — Forty-eight percent of Kentucky REALTORS expect houses to stay on the market for longer, while thirty-three percent anticipate less foot traffic, according to the March 2022 edition of the HousingIQ Survey of Kentucky REALTORS.
“With mortgage rates hovering at five percent, buyers’ housing budgets simply cannot keep up. 22% of the survey respondents reported that some of their buyers had dropped out of the market because of higher mortgage rates,” said Vidur Dhanda, survey author. “Price growth will decelerate with eager sellers dropping their asking price. One-third of the respondents anticipate an increase in price-cutting over the next twelve months.”
In the latest Home Purchase Sentiment Index issue, which tabulates national consumer sentiment, Fannie Mae reported that 73% of respondents said it’s a bad time to buy a home. The Mortgage Bankers Association reported that the national weekly Purchase Index was 6 percent lower than a year ago. Dhanda continued: “The double-digit rent inflation continues to attract investors. 49% of the survey respondents said that investors had outbid their individual buyers—a nine-point jump from last month.”
COMPARED TO A YEAR AGO
- 41% expect house prices to increase—a 24-point drop
- 48% expect houses to stay on the market for longer—a 31-point increase
- 33% expect greater price-cutting by home sellers—a 15-point increase
- 33% anticipate a decrease in foot traffic—a 23-point increase
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 dropped 5 points from last month to close at 44. A value of 100 corresponds to all respondents agreeing that market conditions will improve. In contrast, 50 corresponds to respondents anticipating no change in market conditions.
Compared to a year ago, the headline index is 12 points lower. The Price Expectation sub-index dropped 8 points from last month and is 14 points lower from a year ago.
The Buyer Power sub- ndex inched up 3 points and is 21 points higher than last year. The Homeowner Stress sub-index increased 5 points from last month and is 2 points higher than a year ago.
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