Americans Optimistic on Home Prices, Selling
According to Fannie Mae’s April National Housing Survey, 51% of respondents expect home prices to climb within the next year, illustrating a growing optimism toward the health of the housing industry. That number is up from 48% in March and 32% from a year ago.
Doug Duncan, Fannie Mae’s senior vice president and chief economist, says crossing the 50% threshold marks a significant milestone, as most respondents believe a housing recovery is truly occurring throughout the country. Reflecting that increased optimism toward housing, the share of respondents who think it is a good time to sell has doubled during the last year, climbing 4 percentage points in April 2013 to 30%, compared to 15% in April 2012, he notes.
“Many homeowners who have been underwater are gradually returning to positive equity, and selling is now becoming an available and attractive option again,” explains Duncan. Respondents’ increasing optimism toward the selling market may bode well for continued improvement in housing activity, as recent market data suggest that 5 out of 8 home sellers need to sell before they can buy another home.
Economy and Household Finances
The survey also held good news for the economy. Thirty-nine percent think the economy is on the right track—a 4% increase from March.
Twenty percent say their household income is significantly higher than it was 12 months ago, holding steady from last month. Eleven percent reported significantly lower household expenses compared to 12 months ago—a 3% increase over March.
For detailed findings or to listen to a podcast about the survey results, visit the Fannie Mae Monthly National Housing Survey site.