- Fannie Mae'd November HPSI fell by 2.4 points to 80.8, back to the March 2015 HPSI level.
- Housing affordability was cited as the main index component that contributed to the decrease.
- This indicates buyers might be more flexible about what's on their wish lists.
Fannie Mae released its Home Purchase Sentiment Index (HPSI) last week. And not surprisingly, the November HPSI fell by 2.4 points to 80.8, back to the March 2015 HPSI level. Housing affordability was cited as the main index component that contributed to the decrease.
There are also two other interesting components that are included in the HPSI monthly metrics by Fannie Mae, the “good time to sell” and the “good time to buy.”
In November, the “good time to sell” component decreased by 6 points and the “good time to buy” component increased 1 point.
Without conducting an extensive data analysis on these two components — whether they are trending up or down, whether the trends are crossing or whether the gap between the two components is narrowing or expanding — I thought that now, as a real estate agent, you could encourage your clients that now is a good time to be flexible.
I happened across an article written about new homebuyer preferences. Not surprisingly, purposeful kitchens and storage space top the indoor list. And outside your home, the low-rise home owners’ preferences range from parks and cycling paths to the high-rise homeowners desire for 24-hour security and in-building fitness facilities.
What was surprising about the survey was the sensitivity to indoor and outside amenities. If your clients don’t have the income level to afford their dream house in their dream area, what are they willing to sacrifice? Or in other words, where can they be flexible?
The “flexibility” portion of the survey cited ranked overall home size as the first item new homeowners would be willing to sacrifice. Outdoor community features was second on the list, and commute distance ranked third.
It is quite unlikely that these rankings are 100 percent disjointed from home owners who are seeking to buy an existing home.
Thus, whether it be the dream home or the tiny home, understanding your buyers’ preferences and their sacrifices will support that now is a good time to be flexible.
