Nearly One-Third of Investors View Housing Market as Too Expensive

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This week’s Sentiment Survey special question asked AAII members for their perception of the current state of the housing market. Nearly one out of three respondents (32%) describe housing as lacking enough inventory (especially for entry-level homes) or otherwise being too expensive. An additional 18% say prices are at risk of declining, with rising interest rates cited as a primary catalyst. Approximately 11% described the current environment as a seller’s market, while nearly 19% think the housing market will remain strong.

Here is a sampling of the responses:

  • “Tight with low availability, especially for first-time buyers.”
  • “Bubble developing. Too little inventory and rising interest rates spell trouble.”
  • “It appears to be a seller’s market with prices increasing.”
  • “A bit overpriced, but likely to stay that way.”
  • “As long as interest rates don’t spike, housing will remain strong.”

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