Jul 10, 2012
Consumers’ enthusiasm about housing is growing: Fannie Mae
10 Jul 2012
Posted by Andrew Kantor
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.
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.)