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Survey finds Americans wildly misinformed on housing market 

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Despite millions of Americans preparing to buy a home, Americans are grossly misunderstood about the domestic mercury housing market, according to a new survey.

28 million Americans plan to buy a home in 2023. A study released Tuesday by NerdWallet, personal finance companies. On average, they want to spend $269,200.

But that number is more than $100,000 below median home prices. $388,100 in December, according to real estate broker Redfin. According to Federal Reserve statistics, home prices he crossed the $269,000 threshold in 2013.

If prospective homebuyers sound strangely optimistic about prices, it may be because they are pessimistic about the state of the housing market. He said he expected an imminent crash.

Real estate economists are not. Lawrence Yun, chief economist at the National Association of Realtors, said: Average Selling Price $385,800 This year is almost the same as last year. Redfin 4 percent drop: Bad news for sellers, but not a crash.

“Home prices are already falling, especially on the West Coast, and in 2023 some cities will see prices fall,” said Holden Lewis, a home and mortgage expert at NerdWallet. “However, falling home prices are not necessarily crashes.”

Another puzzler: 61% of Americans told pollsters that current mortgage rates were unprecedented, meaning they had never seen them before.

NerdWallet Data Analyst Elizabeth Renter said:

Average interest rate for a 30-year fixed mortgage 6.15 percent That’s higher than most mortgage rates in years past, sometimes below 3%, according to the Federal Reserve last week.

But it’s not unprecedented. Over the past 50 years, NerdWallet reported that the average 30-year mortgage rate was 7.75%. Mortgage rates in the 6-7% range were common until 2008.

Homebuyers have been exposed to an environment of historically low interest rates for over a decade. The Fed cut interest rates sharply during his 2008 Great Recession to stimulate the economy. The campaign continued on and off during the COVID-19 pandemic.

Runaway inflation triggered a series of dramatic rate hikes in 2022, pushing mortgage rates back to ‘normal’ levels, at least in a historical sense.

A new survey of 2,051 American adults conducted by Harris Poll for NerdWallet is the latest in the annual survey. Polls have found home his shoppers overconfident for several years in a row.

“From the last five years of data, about 10% of Americans say they will buy a home in the next 12 months, which is very optimistic,” Renter said. “Part of it is that they may not be aware of what’s going on in the housing market.”

Nearly 30 million Americans will buy a home in 2023. Probably only a small percentage of them succeed. Only 6 million existing homes sold in 2021.

The survey found it to be more realistic when it asked respondents how their 2022 home-buying plans had fared.

70% of Americans who planned to buy a home in 2022 did not succeed. Some of them made offers that were not accepted. Some have shelved their plans because they could not find affordable housing.

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