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.