Consumers Tip Scales of Home Price Change Expectations; Majority Now Believe Prices Will Climb in Next 12 Months
Illustrating a growing optimism toward the health of the housing industry, more than half of Americans now expect the country’s home prices to climb within the next year. According to Fannie Mae’s April 2013 National Housing Survey results, the share of consumers 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.
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 April Data Release highlighting 11 consumer attitudinal indicators, and a podcast containing highlights from this month’s survey.