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September 23, 2014

Consumers More Optimistic About Home Values

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Consumers More Optimistic About Home Values

Forty-nine percent of Americans say they expect home values to rise over the next 12 months, according to Fannie Mae’s December National Housing Survey of more than 1,000 home owners and renters. In December 2012, slightly fewer Americans -- 43 percent -- had held such big expectations for home price gains. 

For those optimistic about home price increases, the average gain expected is 3.2 percent -- also a jump over last year’s expectations of 2.6 percent, the survey showed. 

More consumers also think it's now a better time to sell their home. Thirty-three percent of respondents said it’s a good time to sell a house, compared to 21 percent who said that in December 2012. 

More consumers also view it as a good time to buy, with that statistic rising 3 percentage points month-over-month in December to reach 67 percent. 

"The marked improvement in housing market sentiment over the course of 2013 bore out our view going into [2014] that the housing recovery was on a firm footing,” said Doug Duncan, chief economist at Fannie Mae. “Year-over-year gains in home price expectations and attitudes about the current selling environment were particularly notable. ... Consumer attitudes about the ease of getting a mortgage today are at their highest level in the survey's three-and-a-half-year history, which should help offset the current higher interest rate environment and support a continued but measured housing recovery as we move through 2014."

Source: “Mortgage Credit Easiest in 3.5 Years, Consumer Attitudes Improve -Fannie Housing Survey,” Mortgage News Daily (Jan. 7, 2014)

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