More Than a Quarter of Investors Think Housing Prices Are Too High

This week’s Sentiment Survey special question asked AAII members how they perceive the current state of the housing market. Responses are mixed. More than a quarter of all respondents (28%) view home prices as being high or unaffordable. About 14% perceive the housing market as weakening while an additional 6% think the housing market is either risky or is in the late stages of its current growth cycle. Slightly more than 9% think the housing market will continue to hold up so long as interest rates don’t rise significantly or if the Federal Reserve cuts rates. Approximately 7% describe the housing market as being steady overall while 8% view it as being strong.

Here is a sampling of the responses:

• “Stable. There’s a balance between buyer demand and seller inventory.”
• “Housing is getting to be too expensive for the average person to buy.”
• “Higher-end multi-family housing in many cities is approaching being significantly over-built.”
• “As long as rates stay low and the economy keeps humming, I think the housing market will stay strong.”
• “It varies from region to region, but overall it seems to be fairly well-balanced between buyers and sellers.”

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