Housing Market Cooling Down Say Kentucky REALTORS®

Lexington, KY, April 17, 2022 --(PR.com)-- 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®.

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

“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 bacause 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.”

The complete report is available here: housingiq.com/housingiq-survey-of-kentucky-realtors-march-2022/