Consumers’ enthusiasm about housing is growing: Fannie Mae

Fannie Mae’s latest monthly survey finds that Americans are getting more confident, nay, enthusiastic about the housing market, even as they receive mixed messages about the economy.

73% think it’s a good time to buy a home, up slightly from May’s 72%, while only 15% thought it was a good time to sell.

image But here’s something interesting: Not only did 35% say they expected prices to rise (the highest number since the survey started), but on average people expect them to rise by 2.0% over the next year — that’s a 42% jump from last month’s expectation of a 1.4% rise.

So consumers are definitely expecting the recovery to continue, and this is a case where expectations can easily turn into reality. Sellers expecting prices to rise might increase their asking prices (something Trulia says is already happening), and buyers won’t be turned off if they, too, expect to see an increase.

Buy vs. rent? If they were moving today, 69% said they would buy (27% said they would rent) — and that 69% is a big jump from last month.

Mortgage rates? No one knows! 37% think they’ll go up, 49% think they’ll stay the same. Only 8% think they’ll go down. (Count me in that 8%, btw.)

Anyway, there’s lots of data and charts available — click here for a rather nice PDF from Fannie, or click here for just the press release.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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One Response to Consumers’ enthusiasm about housing is growing: Fannie Mae

  1. It’s a little bit hard to know. Here in Europe, real estate is really in crisis and few people are keen on buying a house, more and more people are renting instead of buying. This is even more pronunciated in Spain.

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