Improved consumer attitudes could signal healthier housing market
Continued growth in employment and incomes has boosted Americans’ outlook on the selling market, according to Fannie’s June National Housing Survey.
“Our June survey results show the positive impact on housing of job and income growth,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The expectation of higher rents is a natural outgrowth of increasing household formation by newly employed individuals putting pressure on rental rates. A complementary rise in the ‘good time to sell’ measure suggests that limited inventory, which is putting upward pressure on house prices, gives an increasing advantage to the seller. Together, these results point to a healthier home purchase market, with more renters likely to find owning to be more cost-effective than renting and more sellers likely to put their homes on the market.”
According to the report, the share of Americans who believe now is a good time to sell a home rose three percentage points to a new survey high of 52%. The share who say they expect rental prices to go up in the next twelve months also hit an all-time high, rising four percentage points to 59%.
Among other survey highlights:
- The share of Americans who say home prices will rise in the next 12 months fell to 47%. The share who think prices will go down rose to 7%.
- Those who think it’s a good time to buy a house tied a survey low at 63%.
- The share of Americans who think it would be easy to get a mortgage stayed static at 50%. The share who think it would be difficult also held steady at 46%.