It's a great time to sell, but not to buy, according to a Fannie Mae survey. The catch, of course, is that many people need to do both at the same time.
The number of respondents to Fannie Mae's Home Purchase Sentiment Index who report that now is a good time to sell has reached a record high of 52 percent. Meanwhile, those reporting that it's a good time to buy has reached a record low of 60 percent, down from nearly 70 percent two years ago.
A tight housing supply has led to renewed strength in home price appreciation, making selling more attractive, according to the report. The flip side of that, of course, is buyer frustration. Low inventory markets mean limited choice, bidding wars and inflated prices. Despite this competitive environments, shoppers are still keen to buy. More and more consumers believe that home prices will go up in the next 12 months. Less than 44 percent of respondents believed that in February, but the figure has since risen to 48 percent. Most also believe that interest rates will rise, though that figure is waning, according to the survey.
Stagnant wage growth has been putting the pinch on buyers as well. Job security is generally not a concern, with 86 percent of respondents saying they are not concerned about losing their job in the next year; however, only 27 percent say their income is significantly higher than it was a year ago.
Provided by CRS.com
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