Americans haven't been this down on housing market since 1982

Washington

THE last time Americans were this turned off by the US housing market, borrowing costs were over five times the current rate.

The share of people who think now is a good time to buy a home fell in September to 29 per cent, extending the plunge from March when the proportion was more than twice as high, data from the University of Michigan consumer sentiment survey showed last Friday.

It is also the smallest chunk of respondents since 1982.

Back then, the average for a 30-year fixed rate mortgage topped 15 per cent. That compares with today's 2.86 per cent rate, said Freddie Mac.

The figures highlight how property price appreciation has rattled prospective buyers and more than offset the bright side of cheap borrowing.

Prices have skyrocketed amid low inventory as Americans compete for space, with year-over-years gains on previously-owned, single-family homes exceeding 20 per cent - surpassing the inflation-fuelled increases seen in the late 1970s and early 80s, said the National Assocation of Realtors.

The median selling price of such properties rose 18.6 per cent in July from a year earlier to US$367,000, a slight drop from the previous month.

August figures due next week will show if fed-up homebuyers have helped extend the cool-off. BLOOMBERG