Consumers' Positive Housing Attitudes Withstand Fiscal Concerns; Many Indicators Holding At or Near All-Time Highs Despite Sequester
Consumer confidence in the housing recovery remains firm in the face of budget sequestration and other fiscal policy concerns, according to Fannie Mae’s March 2013 National Housing Survey results. Although more Americans indicate greater pessimism regarding their personal finances and the economy, they continue to demonstrate optimism across key housing market measures. The share of consumers who believe home prices will go up in the next year held steady at 48 percent, the all-time survey high. Also reaching a survey high, 26 percent of respondents believe now is a good time to sell a home – nearly twice the share compared to the same time last year.
"Despite an uptick in concern expressed about the direction of the economy, it appears consumers believe that the housing recovery will march on," said 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."
Fannie Mae's monthly national consumer attitudinal survey report provides indicators offering a window into the opinions of Americans across the country. These behavioral insights convey what consumers think about the outlook for owning and renting a home and about their household finances, and may serve as key inputs for determining the future course of investment across housing types.
On this webpage you will find a news release with highlights from the survey results, the March Data Release highlighting 11 consumer attitudinal indicators, and a podcast containing highlights from this month’s survey.