Buyer’s remorse is rampant among pandemic purchasers

A large crop of unhappy homeowners is emerging after having time to settle with their hasty pandemic purchase in the last couple of years.

Buyers at the time were bidding up home prices to beat out fierce competition, and many waived the home inspection or appraisal to get the house they wanted.

But now they may regret the extremes they went to for a home: More than three-fourths of U.S. homeowners who purchased in the prior year expressed regret about their decision, according to an October survey from Hippo, a home insurance group.

The top reasons for their regret are:

-I spent too much: 30%

-I bought too quickly: 26%

-My home requires too much maintenance: 25%

-I bought a fixer-upper: 24%

-I was pressured to make an offer: 21%

-I bought sight-unseen: 17%

-I don't like my home's location: 15%

-I don't like my neighbors: 15%

-I don't like my home: 13%

This survey was conducted by Kickstand Communications on behalf of Hippo Insurance Services. Fielded between October 22-28, 2022, the results are based on 1,002 respondents.

These top 5 housing markets are expected to crash first…

According to the results of a survey from Consumer Affairs, if you call one of these five cities home, you might want to prepare for your home’s value to take a tumble in the year ahead.

1) Austin, Texas

2) Atlanta

3) Bakersfield, California

4) Los Angeles

5) Albuquerque, New Mexico

Coming in at number four, 23% of those polled believe Los Angeles is the city most likely to see housing prices drop.

As of October, the median listing home price in Los Angeles was $999,000 at $649 per square foot, up 5.2% year-over-year. The median home sold price was $915,000, with homes selling after a median 62 days on the market.

Prices have decreased slightly since July, down from a median listing price of $1 million at $654 per square foot. But the drops can especially be seen in the median sale prices in L.A. — down from $948,000 in the summer. And homes are lingering on the market for nearly two weeks longer, compared to 49 days in July.

If prices drop as much as 15% from the summer’s numbers, that would lower the median listing price to $850,000 — a decrease of $150,000.

30-year fixed-rate mortgage jumps over 7%

In my 14-year career, I have never seen interest rates climb so quickly in such a short amount of time. They were in the high 2% range earlier this year.

Source: CNBC