April 14, 2013 9:02 am
“Despite an uptick in concern expressed about the direction of the economy, it appears consumers believe that the housing recovery will march on,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “Housing sentiment remains unshaken from the highs of the last few months. At the same time, perhaps driven by the experience of the past several years, consumers remain cautious in their housing outlook. While the survey shows a string of 17 positive one-year-ahead home price expectations through March, the average expected gains have remained below 3 percent. By comparison, main measures of national home prices in early 2013 posted year-over-year gains of at least double or triple that figure.”
Homeownership and Renting
• The average 12-month home price change expectation fell slightly from last month’s survey high to 2.7 percent.
• At 48 percent, the share of respondents who believe home prices will go up in the next 12 months held steady at the survey high, while the share who believe home prices will go down remained at the survey low of 10 percent.
• The percentage of respondents who think mortgage rates will go up increased to 46 percent, the highest level since May 2011, while those who think they will go down dipped slightly to 6 percent.
• Twenty-six percent of respondents say it is a good time to sell a house, up 1 percentage point over February and the highest level since the survey’s inception in June 2010.
• At 4.1 percent, the average 12-month rental price change expectation increased 0.2 percent over February.
• Fifty percent of those surveyed say home rental prices will go up in the next 12 months, holding steady at the highest level since the survey’s inception for the third straight month.
• The share of respondents who said they would buy if they were going to move fell 3 percentage points to 64 percent.
The Economy and Household Finances
• At 35 percent, the share of respondents who say the economy is on the right track decreased 3 percentage points from February.
• The percentage of respondents who expect their personal financial situation to get worse over the next 12 months rose by 4 percentage points to 21 percent.
• Twenty percent of respondents say their household income is significantly higher than it was 12 months ago, a slight decrease from last month.
• Thirty-two percent reported significantly higher household expenses compared to 12 months ago, a slight increase over February.
Published with permission from RISMedia.