The National Association of Realtors reported that more consumers thought it was a good time to sell a home, encouraged by a stable job market and income growth. According to an article they published in Realtor Mag, Fannie Mae’s latest Home Purchase Sentiment Index, which capped off its strongest year so far showed that the share of consumers who reported their income was significantly higher than it was 12 months ago rose 9 percentage points on net in December.
“Consumers ended the year on an improved note with regard to their income, job security, and overall economic outlook,” says Doug Duncan, Fannie Mae’s chief economist. “Brightening economic prospects, if sustained, should stimulate demand for home ownership. However, continuing upward pressure on rental prices and constrained housing supply, particularly for starter homes, may mean prospective first-time home buyers could face affordability constraints.”
Fannie Mae’s survey found that 40 percent of 1,000 respondents surveyed said they are confident home prices will rise this year.
Also, their financial picture is improving too. Eighty-five percent of respondents said they are not concerned about losing their job, which ties an all-time survey high. What’s more, the number of respondents who say their household income is significantly higher than it was 12 months ago increased 9 percentage points to 15 percent in the survey.
Other highlights from the survey include:
*The net share of respondents who say that it is a good time to buy a house remained flat at 35%.
*The net percentage of respondents who say it is a good time to sell a house rose after falling for two months in a row – rising 4 percentage points to 8% in December.
*The net share of respondents who say that home prices will go up rose 2 percentage points to 40%.
*The net share of those who say mortgage interest rates will go down continued to decrease, dropping 4 percentage points to negative 52%.
*The net share of respondents who say they are not concerned with losing their job rose 3 percentage points to 72%. 85% of respondents say they are not concerned about losing their job, tying an all-time survey high.
*The net share of respondents who say their household income is significantly higher than it was 12 months ago rose 9 percentage points to 15%.
For more information about the complete survey visit http://www.fanniemae.com/portal/about-us/media/corporate-news/2016/6333.html.