Key Highlights
- After nose diving to lowest level ever in April, consumer sentiment about housing jumped significantly in June
- Renters particularly optimistic about home buying
- According to Fannie Mae survey, 61% of consumers think now a good time to buy
In a recent monthly survey, Fannie Mae found that 61% of consumers believe that now is a good time to buy a house. That 61% percentage point is up from just 52% in May.
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According to Doug Duncan, senior vice president and chief economist with Fannie Mae, “The share of renters who say now is a good time to buy a home is at its highest level in five years, suggesting favorable conditions for first-time home-buying, consistent with the recent rebound in home purchase activity.”
Consumers who indicated that now is a good time to sell when responding to this same survey also increased from 32% in May to 41% in June. This jump in seller confidence was represented by a record 44% jump in May of pending sales.
Duncan cautioned consumers to not become too ebullient about housing, however. He said, “…this activity may cool again in the coming months, depending on the extent to which it can be attributed to consumers having chosen to delay or to accelerate home-buying plans due to the pandemic. We believe the continuing uncertainty regarding the coronavirus’ containment suggests an uneven and potentially volatile course toward economic recovery.”
Job security is a huge and legitimate concern among renters and homeowners alike. Due to the explosive increase of COVID infections across the country and recent re-closings due to those increases throughout many states, many are anxious about keeping their job if they still have one or about when/if they can return to their job.
Also according to this recent Fannie Mae survey, more Americans think home prices will strengthen. (CoreLogic disagrees with this thinking – see this week’s post about its forecasts.) They also expect mortgage interest rates to rise over the next year.
Thanks to HousingWire.
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