Funny saying but the truth is that consumer confidence is very important for our economy. If people are living in fear, it is pretty tough for them to find the confidence to buy a home.
Consumer Attitudes About Real Estate & the Economy
Which is why the changes in the December 2011 Fannie Mae National Housing Survey regarding people’s attitudes is important! Let’s look at some of the highlights:
- 69% say the economy is on the wrong track (down by 6 percentage points since November)
- On average, Americans expect home prices to increase by 0.8% over the next 12 months, up from 0.2% in November.
- 36% expect home prices to increase over the next 12 months
- 52% say home prices will stay the same.
- 36% say that mortgage rates will go up over the next 12 months
- 71% say it is a good time to buy a home
- On average, Americans expect home rental prices to increase by 3.5% over the next 12 months
So 69% think the economy is on the wrong track BUT 71% think now is a good time to buy a home. Things that make you go Hmmmm…
HUD Housing Scorecard December 2011
Now lets look at several charts from the latest HUD Housing Scorecard:
The Take Away
71% of consumers think that right now is a good time to buy a home. Low mortgage rates and high affordability levels confirm what consumers think. Home prices are predicted to stay pretty much where they are.
But 69% of the population thinks the economy is headed in the wrong direction. And I have to agree sometimes when I see the bickering and lack of progress in Washington. It just makes me sad to think some people are missing out on a spectacular opportunity to buy a home.
Whether you are part of the 69% or the 71% the facts are crystal clear.
Mortgage rates are low, home prices are great and affordability is very high.
Are YOU Part of the 71% or the 69%?