This week’s Sentiment Survey special question asked AAII members for their perception of the housing market. Just over half of all respondents (51%) described housing as being overheated, becoming unaffordable or otherwise at risk of a decline. Many respondents pointed toward a lower supply of homes for sale, especially at affordable price levels. Nearly 34% believe the housing market will continue to stay strong, in part due to strong demand. Many of the remaining respondents either viewed housing as being fairly valued or described it as varying by geographic area. Several respondents, across classifications, specifically discussed the market environment in their local area.
Here is a sampling of the responses:
- “Fewer affordable units make the housing market vulnerable to a pullback.”
- “I think we are heading to a more stable market, not some extreme in either direction.”
- “Demand is greater than supply; prices will continue to increase modestly.”
- “In the county I live in, house prices are far beyond the ability of county residents to buy them.”
- “I just hope prices are this high when we are ready to sell.”
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