{"id":1176,"date":"2020-04-12T05:32:11","date_gmt":"2020-04-12T05:32:11","guid":{"rendered":"https:\/\/housingmarketgroup.com\/?p=1176"},"modified":"2020-04-12T05:32:11","modified_gmt":"2020-04-12T05:32:11","slug":"housing-sentiment-takes-a-hit-in-reaction-to-covid-19","status":"publish","type":"post","link":"https:\/\/housingmarketagentnetwork.com\/hy\/housing-sentiment-takes-a-hit-in-reaction-to-covid-19\/","title":{"rendered":"Housing Sentiment Takes a Hit in Reaction to Covid-19"},"content":{"rendered":"\n

Home purchase sentiment dropped swiftly in March, as early reactions to Covid-19 began to surface. In March, the Fannie Mae Home Purchase Sentiment Index\u00ae (HPSI)<\/a>\u00a0fell 11.7 points to 80.8, the lowest level since December 2016. The index which measures housing attitudes, intentions, and perceptions, using six questions from the National Housing Survey\u00ae (NHS), is a good\u00a0 indicator of eventual buyer and seller behavior during the homebuying season. The unprecedented drop in March reflected rapidly growing concerns from both home buyers and sellers, and marked the biggest decline since the index was introduced in 2011. Importantly, the survey-based index is largely composed of data for the first two weeks of the month, when Covid implications were still unfolding. Hence, despite capturing an inflection in consumers attitudes and expectations, the March figures may yet to capture the full extent of the impact.<\/p>\n\n\n\n

In March, five out of the six index measures in March decreased on a yearly basis, with selling conditions, job security, and home price growth seeing the sharpest drops. Curiously, movement in the index broke the pattern seen since 2011, with sellers (not buyers) reporting a bigger and faster negative reaction. Typically,  in a growing market, sellers tend to wait and adjust to buyer demand as they themselves adjust to economic shifts. Indeed, seller sentiment took a bigger and quicker hit; the net percentage of those who say it is a \u2018good time to sell\u2019 fell 27 percentage points from last March. In contrast, the net percentage of those who say it is a \u2018good time to buy\u2019 decreased by 2 percentage points over last year.<\/p>\n\n\n\n

For sellers, unless key economic indicators decline further than expected during a normal recession, this atypical buyer-seller pattern could reverse again, allowing them to regain leverage as activity resumes. For buyers, the state of recalibration will remain in the near-term as health measures, fiscal and monetary policy, and stimulus packages evolve.<\/p>\n\n\n\n

While more buffered to economic shocks than industries, housing activity will be tested in the next few months as economic declines take shape and both buyers and sellers adjust to new challenges. To the housing market\u2019s advantage, the same Covid-triggered pause in activity creates a backlog of both demand and supply, which can help fuel the initial recovery. However, the underlying and previously existing issues with low supply will be harder to solve, especially if sellers\u2019 confidence continues to wobble.<\/p>\n","protected":false},"excerpt":{"rendered":"

Home purchase sentiment dropped swiftly in March, as early reactions to Covid-19 began to surface. In March, the Fannie Mae Home Purchase Sentiment Index\u00ae (HPSI)\u00a0fell 11.7 points to 80.8, the lowest level since December 2016. The index which measures housing attitudes, intentions, and perceptions, using six questions from the National Housing Survey\u00ae (NHS), is a […]<\/p>\n","protected":false},"author":3,"featured_media":1177,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[62,88,23],"class_list":["post-1176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-market","tag-covid-19","tag-housing","tag-thailand-housing-market"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t