Consumers More Optimistic About Housing the Economy

first_img Agents & Brokers Attorneys & Title Companies Confidence Demand Fannie Mae Home Equity Home Prices Home Sales Investors Jobs Lenders & Servicers Processing Service Providers Unemployment 2013-02-07 Tory Barringer in Data, Government, Origination, Secondary Market, Servicing Consumers More Optimistic About Housing, the Economy Sharecenter_img Consumers are showing increased confidence in home sales and a greater sense of job security, according to the results of “”Fannie Mae’s””: most recent “”National Housing Survey””:[IMAGE]January’s findings show 41 percent of respondents believe home prices will go up in the next year, a decline of 2 percentage points from December’s high. However, the share who believe prices will fall also dropped, returning to a survey low of 10 percent.The average 12-month home price change expectation in January was 2.4 percent, a slight decrease from December’s high of 2.6 percent.Twenty-three percent of respondents say now is a good time to sell a house, up 2 percentage points from December and 12 percentage points year-over-year, while 69 percent say now is a good time to buy–a slight decline from December.The share of respondents who would buy if they were going to move held steady at 65 percent, while the share who would rent fell a bit to 30 percent.””The housing market continues to firm, with consumer home price expectations for both rental and ownership properties near the strongest levels that we’ve seen in the survey’s two-and-a-half-year history,”” said Doug Duncan, SVP and chief economist at Fannie Mae. “”Concerns about job loss are waning as payrolls are growing–a trend that may give potential homebuyers more confidence that they can meet the financial obligation of homeownership.””Duncan added that the continuing upward trend in consumers who say now is a good time to sell may reflect two related events: “”First, homeowners see that home prices are improving. Second, the number of homeowners who are underwater is declining, reducing a barrier for those owners who need to sell their home in order to buy a new one.””On the financial front, 39 percent of respondents believe the economy is on the right track, up from 38 percent in December but down from 45 percent in November. The share who said the economy is on the wrong track fell to 53 percent, a 1 percentage point drop.Twenty-three percent of respondents said their household income is significantly higher than it was a year ago (flat from December), while 43 percent expect their personal financial situation to improve over the next year–a rise of 3 percentage points. The share of respondents reporting significantly higher household expenses compared to 12 months ago rose to 38 percent, the highest level since December 2011.The employment outlook was also better: The percentage who expressed concern about losing their job in the next year declined 1 percentage point to 19 percent, a survey low.The findings stand in stark contrast to “”several other””: “”consumer confidence reports””: published in January, most of which showed increased pessimism following the payroll tax hike. February 7, 2013 427 Views last_img

Leave a Reply

Your email address will not be published. Required fields are marked *