May 07, 2013Consumers Tip Scales of Home Price Change Expectations
WASHINGTON, DC – More than half of Americans now expect the country’s home prices to climb within the next year, illustrating a growing optimism toward the health of the housing industry. The share of respondents to Fannie Mae’s April 2013 National Housing Survey results who expect home prices to go up rose another 3 percentage points in April to 51 percent. By comparison, at the same time last year only 32 percent expected an increase in home prices.
“For the first time in the survey’s three-year history, the majority of Americans surveyed now expect home prices to increase,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Crossing the 50 percent threshold marks a significant milestone as most Americans believe a housing recovery is truly occurring throughout the country. Reflecting that increased optimism toward housing, the share of Americans who think it is a good time to sell has doubled during the last year. Many homeowners who have been underwater are gradually returning to positive equity, and selling is now becoming an available and attractive option again.”
The share of respondents who say now is a good time to sell climbed 4 percentage points in April to 30 percent, compared to 15 percent at the same time last year. Americans’ increasing optimism toward the selling market may bode well for continued improvement in housing activity, as recent market data suggest that five out of eight people who buy a home first have to sell.
Homeownership and Renting
The Economy and Household Finances
The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,001 Americans via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future.
For detailed findings from the April 2013 survey, as well as a podcast providing an audio synopsis of the survey results and technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey site. Also available on the site are in-depth topic analyses, which provide a detailed assessment of combined data results from three monthly studies. The April 2013 Fannie Mae National Housing Survey was conducted between April 1, 2013 and April 21, 2013. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.