Housing optimism gains!

 

Americans’ Housing Optimism Gains More Momentum
Consumer attitudes about the housing market showed marked improvement last month, strengthening the case for a lift in housing activity this year, according to results from Fannie Mae’s May 2015 National Housing Survey. In line with the positive May jobs report—which showed an acceleration in average hourly earnings—and reflecting recent trends of firming personal income growth, the share of survey respondents reporting a significant increase in their household income climbed 4 percentage points to a near all-time high.

Homeownership and Renting Highlights

  • The average 12-month home price change expectation remained at 2.8 percent.
  • The share of respondents who say home prices will go up in the next 12 months rose to 49 percent. The share who say home prices will go down fell to 6 percent.
  • The share of respondents who say mortgage rates will go up in the next 12 months fell to 47 percent.
  • Those who say it is a good time to buy a house rose back up to 66 percent, while those who say it is a good time to sell went up 3 percentage points to 49 percent – a new survey high.
  • The average 12-month rental price change expectation rose to 4.3 percent.
  • The percentage of respondents who expect home rental prices to go up rose to 55 percent.
  • Those who think it would be easy to get a home mortgage decreased by 2 percentage points to 50 percent, while those who think it would be difficult remained at 46 percent.
  • The share who say they would buy if they were going to move rose 3 percentage points to 66 percent, while the share who would rent fell to 27 percent.

 

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