Every month Fannie Mae surveys American consumers about their attitudes toward housing. Responses in the January survey showed nascent glimmerings of hope for the single-family housing market.
Glimmer One
Americans expect home prices to increase 1 percent in the next 12 months. This is a huge turnaround. For most of last summer, Americans expected home prices to continue to fall.
- 51 percent thought home prices would stay the same.
- 28 percent thought prices would increase.
- Just 16 percent thought prices will fall.
Glimmer Two
A huge majority of Americans report now is a good time to buy a house. This is why investor demand for single-family houses is so strong. People perceive that houses can be bought at a very attractive price. Conversely, sellers have the same perception. They aren’t so enthusiastic about the prospects of selling right now.
Transaction volume is likely to stay muted until people feel that now is a good time to sell as well as to buy. Until this changes, current owners are likely to stay where they are and postpone the next move up.
- 71 percent think now is a good time to buy a house.
- 10 percent think now is a good time to sell a house.
Glimmer Three
Americans expect rental rates to increase 3.2 percent in the next year. This is about the same as last year. As rental rates continue to increase each year, the urge to buy a house to avoid future rent hikes will increase.
Glimmer Four
Fully 64 percent of American consumers said that if they were going to move, they would buy a house. Only 30 said they would rent. The other 6 percent must be planning on camping or moving back home with their parents.
Fannie Mae conducted the survey from Jan. 9 to Jan. 27.
