New Fannie Mae survey finds buyers are taking a "wait and see" approach when considering purchasing a home

Real Estate Agent with Coldwell Banker Brokers of the Valley

Consumers taking a “wait and see” approach to buying, selling

Consumer data show that Americans are taking a “wait and see” approach to buying or selling a home, according to Fannie Mae’s May 2012 National Housing Survey.  

“This is not surprising given their assessment that their income during the past twelve months and their personal financial expectation for the next twelve have leveled off,” said Doug Duncan, vice president and chief economist of Fannie Mae.  “These data are in line with what we are seeing on the macroeconomic front, as upside and downside risks and activities are moderating one another.  Current jobs data are reminiscent of the spring slowdown that continued into the summer months during the last two years.  If this pattern continues, we do not expect to see any significant upturn in consumer sentiment during the summer, and a meaningful housing recovery likely will be delayed once again.”

Highlights of survey include:

  • On average, Americans expect home prices to increase by 1.4 percent over the next 12 months, up 0.5 percentage points since March 2012 and the highest value yet recorded.
  • Thirty-four percent of respondents say that home prices will go up in the next 12 months, the highest level recorded since March 2011.
  • Forty-one percent of respondents expect home mortgage rates to go up in the next twelve months, a slight increase from last month.
  • The percentage of respondents who say it is a good time to buy increased by 1 percentage point to 72 percent, while the percentage of respondents who say it is a good time to sell remained at 15 percent.
  • On average, respondents expect home rental prices to increase by 4.1 percent over the next 12 months, a 0.5 percentage point increase versus last month and a return to the level seen in March.
  • Forty-nine percent of respondents think that home rental prices will go up, consistent with last month’s value and remaining the highest number recorded to date.
  • At 32 percent, the percentage of respondents who would rent if they were going to move is unchanged, while 63 percent would buy.
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Richard and Beth Witt
Keller Williams Elite Realty 516-795-6900 - Massapequa, NY
Broker/Owner RE/MAX Wittney Estates Long Island NY

Thanks for taking the time to write this post Curtis... I enjoyed it and hope some other folks do to... You have a great day!

Jun 18, 2012 10:56 AM #1
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Curtis - Perhaps it's just the warmer weather but our buyers seem to be a little more cautious these days and are waiting for more inventory to come on the market.  I guess it's the "wait and see" phase.  Great post!

Jun 18, 2012 10:58 AM #2
Curtis Van Carter
Coldwell Banker Brokers of the Valley - Yountville, CA
Your Napa Valley Broker Extraordinaire


Thanks for your kind words. I know the market is extremely crazy in many areas of the country and inventory is low which would seem to show the opposite of this, and the numbers in this survey seem to contradict their press release. Who knows, cheers cvc

Jun 18, 2012 11:13 AM #3
Robert (Bob) Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert


Your blog is an excellent recap of the survey and its results. I also think many consumers are concerned about the looming Presidential Election. Wait and see attitude will hurt those that follow that pattern as housing prices will continue to go up and interest rates will increase rather dramatically.

Jun 18, 2012 11:38 AM #4
John McCormack
Albuquerque Homes Realty * - Albuquerque, NM, Albuquerque Homes Realty

We're seeing many buyers jumping off the fence in our area.  I worked all weekend and wrote 2.5 contracts.  I agree with Bob after the election we will either see things sky rocket or plummet.  Time will tell the tale I pray for the better. 


Jun 18, 2012 12:09 PM #5
Yolanda Cordova-Gilbert
David Weekley Homes - Katy, TX
David Weekley Homes in Cane Island


             Here in our area prices continue to go up; because of rising costs and market imporvements. We are lucky here in Houston our economy has added over 174,000 jobs in the last 12 months. Take care my friend.

Jun 18, 2012 01:11 PM #6
Curtis Van Carter
Coldwell Banker Brokers of the Valley - Yountville, CA
Your Napa Valley Broker Extraordinaire


So true about Texas doing better than CA these days. Our state unemployment rate is 10.8%. Granted it dropped a bit this month from 11% but still one of the worst in the country.

cheers cvc

Jun 19, 2012 08:29 AM #7
Francine Viola
Coldwell Banker Evergreen Olympic Realty, Olympia WA - Olympia, WA
Realtor, In Tune with your Real Estate Needs

We are seeing much higher pendings and solds than we did last year, and I think buyers are beginning to see that, in our area at least, we probably have hit bottom, and if they want to take advantage of low prices and low interest rates, they shouldn't delay too much longer.

Jun 19, 2012 01:50 PM #8
Curtis Van Carter
Coldwell Banker Brokers of the Valley - Yountville, CA
Your Napa Valley Broker Extraordinaire


Thank you for your comment, cheers cvc

Jun 20, 2012 08:28 AM #9
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