There seems to be a shift in several key housing market indicators, according to Fannie Mae’s March 2012 consumer attitudinal National Housing Survey. More Americans now expect both home rental and home purchase prices to increase over the next year. In addition, confidence in consumers’ views of their own finances is stabilizing. Are these trends providing Americans with an increased sense of urgency to buy a home?
73% of Americans now believe it is a good time to buy a home. This is up from 70% in February. “Conditions are coming together to encourage people to want to buy homes,” says Doug Duncan, Vice President and Chief Economist of Fannie Mae. “With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”
A number of factors seem to be contributing to Americans’ Expectations:
- Home prices are expected to increase over the next year.
- Mortgage rates are expected to go up over the next year.
- People feel “it is a good time to buy”.
- Home rental prices are expected to increase over 4% – a significant increase.
There appears to be good news about the economy in general and Americans’ household finances. There was a rise in confidence in the overall economy this month. 35% of respondents think the economy is on the right track. A very low (12%) of respondents think their personal financial situation will worsen in the next 12 months. This is good news for everyone.
For more information, visit http://www.fanniemae.com.
Until next time, Irene