Talking about the Fannie Mae April 2012 National Housing Survey…
Fannie Mae just released their survey about consumer attitudes towards housing, home prices and real estate. Fannie Mae says that despite the crummy unemployment numbers, Americans are starting to feel better about about homeownership, the economy, and their personal finances.
Doug Duncan, vice president and chief economist of Fannie Mae:
This month’s survey shows a continued gradual improvement in consumer sentiment and outlook for home prices. After flatlining at depressed levels for over a year, a growing share of consumers indicate that it is a good time to sell, suggesting rising optimism for the housing market. Overall, consumer views of housing market conditions have become more supportive of home purchases, and sustained healthy hiring is required to help realize these improved expectations.
Good to hear that more consumers are starting to feel more confident.
On average, Americans expect home prices to increase by 1.3% over the next 12 months. If we look at the latest data from the April 2012 Market Report, we will see that the median home price in the WUAR MLS is up 9.9% compared to April 2011. And the average home price is up 3.3% compared to April 2011.
I am firmly in the 50% that thinks home prices will stay the same for the next 12 months. Considering we never know with 100% certainty what tomorrow holds, there could be something bad happen that does cause prices to start falling again.
Both buyers and sellers need to keep their eyes on mortgage rates. The turmoil in Europe could mean rates change. Best to talk with your mortgage professional to see what they suggest.
I am in the 71% that thinks right now is a great time to buy for some people. The question is IF you are one of those lucky people?
On average, respondents expect home rental prices to increase by 3.6% over the next 12 months. Notice that rents are expected to rise more than home prices. This is something for anyone thinking about buying a home to consider.
It is great to see fewer people being pessimistic about the economy than just a few months ago. For anyone selling a home, this fact that people are starting to feel better about the economy is good news. Plus all the recent positive reports about housing finally hitting bottom just might get more buyers to act.