“Home price is a major driver of the segment. During that time, if we think over the summer, we’ve had releases of different home price indices that have had around 19% year over year changes. That’s pretty remarkable.”
Homeowners and renters were asked more than 100 questions used to track attitudinal shifts, six of which were compiled for the HPSI survey. Year over year, the full index is down 6.5 points, while the net share of those who said it is a good time to buy also decreased seven percentage points, month over month.
Palim said the slump in home building caused by a mixture of high construction costs, supply and labor shortages as well as zoning restrictions were affecting one specific sector.
He said: “When the supply becomes constricted, it’s the more moderately priced homes that are affected by price appreciation because that’s where the supply’s the tightest.”
House price increases have a knock-on effect on people with lower incomes, as they are being edged out of the market due to the severe lack of affordable homes on the market, he explained.