Upbeat Sellers Show Readiness to Make a Move

Upbeat Sellers Show Readiness to Make a Move
National Association of REALTORS® | June 21, 2018

Home prices are climbing across the country, and that has made homeowners more bullish when it comes to the prospects of selling. Seventy-five percent of more than 2,700 households recently surveyed say it’s a good time to sell a house; 68 percent say it’s a good time to buy, according to the National Association of REALTORS®’ second quarter Housing Opportunities and Market Experience (HOME) survey.

“Hopefully this strong seller optimism will lead to an increase in inventory later on in the year,” says Lawrence Yun, NAR’s chief economist.

Fifty-five percent of consumers say they believe that home prices will continue to increase in their communities over the next six months, up from the previous quarter (53 percent), according to NAR’s report.

In the second quarter, however, optimism for buying stayed stagnant. Thirty-nine percent of consumers strongly agree now is a good time to buy, while 29 percent moderately agree. A decreasing number of renters are upbeat about buying, dropping from 55 percent in the first quarter to now 49 percent in the second quarter. Optimism for buying is highest among older buyers 65 or over, as well as those living in the South and Midwest regions, the report found.

“Inventory remains the driving force in real estate, affecting everything from rising prices to household formation,” Yun says. “Improving supply conditions is critical to improving buyer optimism and helping to remove some of the barriers holding back potential first-time buyers.”

Overall, consumers are more optimistic about the economy. Fifty-eight percent of households surveyed said they thought the economy was improving, with people in rural areas the most upbeat about economic conditions, according to the survey.

Their optimism over the economy has also helped more consumers believe that they would have an easier time to obtain a mortgage. “This is most likely a reflection of the current positive outlook on the direction of the economy,” Yun says. “Healthy job creation and faster wage growth mean that homeownership is viewed as a more attainable goal than it was a year ago.”

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Source: “Q2 Housing Opportunities and Market Experience (HOME) Survey,” National Association of REALTORS® (June 21, 2018); REALTOR® Magazine 062118

Consumer Sentiment Breaks Record—Again

Consumer Sentiment Breaks Record—Again
Fannie Mae   article by Daily Real Estate News | June 11, 2018

House 1049For the second consecutive month, Fannie Mae’s Home Purchase Sentiment Index reached an all-time survey high in May. But as home prices rise, consumer attitudes about buying and selling a home are diverging even more.

The net share of survey respondents who say now is a good to sell rose to 46 percent and is now up 14 percentage points year over year. Meanwhile, the net share who say now is a good time to buy fell to 28 percent and has shown little improvement over the past year, Fannie Mae notes.

The Home Purchase Sentiment Index “edged up to another survey high in May, bolstered in part by a fresh record high in the net share of consumers who say it’s a good time to sell a home,” says Doug Duncan, Fannie Mae’s chief economist. “However, the perception of high home prices that underlies this optimism cuts both ways, boosting not only the good-time-to-sell sentiment but also the view that it’s a bad time to buy, and presents a potential dilemma to repeat buyers.”

Fannie’s Home Purchase Sentiment Index is up 6.1 points compared to last year. In May, it posted a reading of 92.3.

Here’s a closer look at other results in the May survey (based on 1,000 respondents):

  • 49 percent: The net share of Americans who say home prices will rise in the next 12 months, unchanged from the month prior.
  • 78 percent: The net share of Americans who say they are not concerned about losing their job, rising 2 percentage points month over month to reach a new survey high.
  • 21 percent: The net share of Americans who say their household income is significantly higher than it was 12 months ago, up 3 percentage points month over month to reach a new survey high.

Source: Fannie Mae; REALTOR® Magazine Online, Daily Real Estate News 061118