#W2WTW What to Watch This Week
Lack of Affordability Continues to Suppress Buyer Demand
The MBA’s chart of the week says it all. The chart highlights the continued downward trend in purchase applications from their +25% peak in February of 2018 to a -28% low in December of that same year.
According to the NAHB’s Housing Trends Report, only 13% of prospective buyers plan to purchase in the next 12 months—down from 24% just one year ago.
As home prices continue to rise in select markets—especially amongst the priciest tiers—we anticipate prospective buyers will continue to extend their timeframes to purchase as well as expand their search areas for a home within their desired budget.
Homebuyers planning to buy soon are falling off the map
The share of home shoppers planning on buying a house within a year tanked in the fourth quarter, and those who are searching blame affordability struggles for their setbacks, according to the National Association of Home Builders.