Since home buyer sentiment is a leading indicator, what clues does this provide for our future real estate market?

Lowered Expectations

If buyers are not feeling that this is the time to buy, we can expect them to delay that move. While interest rates and high asking prices have already pushed many out of the market, this data shows that home buyer sentiment has gotten to the point that even those that want to and can buy a home are more likely to wait.

Inventory is going to grow faster

We have already seen the existing economic factors increase home inventory numbers in Santa Clara County. This epic low home buyer sentiment will just accelerate this accumulation of homes.

What about San Jose, Morgan Hill and Gilroy?

This change in buyer attitude is going to, most likely, effect ALL of our local markets. Some sub-markets within these cities will remain hot longer – but this drop in home buyer sentiment is likely to hit the real estate market across the board

Multifamily rents

In todays show, I also touch on an interesting national event where rents stayed the same from August to September. While this is interesting and something to keep an eye on, I am not seeing this happening in our local markets.

Articles:

• https://seekingalpha.com/news/3889720-home-purchase-sentiment-sinks-to-11-year-low-in-september-fannie-says
• https://www.connectcre.com/stories/multifamily-rent-rates-stay-put-in-september-fundamentals-remain-strong/