Consumer Housing Sentiment Continues to Rise as Employment Concerns Wane
More Americans Say Now is a Good Time to Sell
WASHINGTON, Feb. 7, 2013
WASHINGTON, Feb. 7, 2013 /PRNewswire/ -- Increasing confidence in home sales
and an improved sense of job security provide further evidence of the
strengthening of the housing market, according to Fannie Mae's January 2013
National Housing Survey results. Underlying the growing sense of optimism, the
percentage of survey respondents who think it is a good time to sell a home
continued to climb to 23 percent last month from 11 percent the same time last
year. While expectations regarding personal finances stayed relatively flat
last month, other housing indicators remained at or near survey highs,
indicating consumers remain confident in the stability of the housing market.
"The housing market continues to firm, with consumer home price expectations
for both rental and ownership properties near the strongest levels that we've
seen in the survey's two-and-a-half-year history," said Doug Duncan, senior
vice president and chief economist at Fannie Mae. "Concerns about job loss are
waning as payrolls are growing – a trend that may give potential homebuyers
more confidence that they can meet the financial obligation of homeownership.
The upward trend over the past year and a half in the share of consumers who
say it's a good time to sell may reflect two related events. First, homeowners
see that home prices are improving. Second, the number of homeowners who are
underwater is declining, reducing a barrier for those owners who need to sell
their home in order to buy a new one."
Homeownership and Renting
oThe average 12-month home price change expectation fell slightly from last
month's survey high to 2.4 percent.
oAt 41 percent, the share of those surveyed who believe home prices will go
up in the next 12 months decreased by 2 percentage points from December's
survey high, while the share who believe home prices will go down returned
to the survey low of 10 percent.
oThe percentage of those surveyed who think mortgage rates will go up
decreased by 3 percentage points to 41 percent, while those who think they
will go down dipped slightly to 7 percent.
oTwenty-three percent of respondents say it is a good time to sell a house,
up by 12 percentage points year-over-year.
oAt 3.7 percent, the average 12-month rental price change expectation fell
0.9 percent from last month's survey high.
oFifty percent of those surveyed say home rental prices will go up in the
next 12 months, a slight increase over December, and the highest level
since the survey's inception.
oThe share of respondents who said they would buy if they were going to
move held steady at 65 percent.
The Economy and Household Finances
oAt 39 percent, the share of respondents who say the economy is on the
right track increased slightly over December.
oThe percentage who expect their personal financial situation to get better
over the next 12 months rose by 3 percentage points to 43 percent.
oTwenty-three percent of respondents say their household income is
significantly higher than it was 12 months ago, holding steady from last
oThirty-eight percent reported significantly higher household expenses
compared to 12 months ago, the highest level since December 2011.
oThe percentage who are concerned they will lose their job in the next 12
months declined 1 percentage point to 19 percent, a survey low.
The most detailed consumer attitudinal survey of its kind, the Fannie Mae
National Housing Survey polled 1,003 Americans via live telephone interview to
assess their attitudes toward owning and renting a home, home and rental price
changes, homeownership distress, the economy, household finances, and overall
consumer confidence. Homeowners and renters are asked more than 100 questions
used to track attitudinal shifts (findings are compared to the same survey
conducted monthly beginning June 2010). Fannie Mae conducts this survey and
shares monthly and quarterly results so that we may help industry partners and
market participants target our collective efforts to stabilize the housing
market in the near-term, and provide support in the future.
For detailed findings from the January 2013 survey, as well as a podcast
providing an audio synopsis of the survey results and technical notes on
survey methodology and questions asked of respondents associated with each
monthly indicator, please visit the Fannie Mae Monthly National Housing Survey
site. Also available on the site are quarterly survey results, which provide a
detailed assessment of combined data results from three monthly studies. The
January 2013 Fannie Mae National Housing Survey was conducted between January
5, 2013 and January 28, 2013. Interviews were conducted by Penn Schoen
Berland, in coordination with Fannie Mae.
Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's
Economic & Strategic Research (ESR) Group included in these materials should
not be construed as indicating Fannie Mae's business prospects or expected
results, are based on a number of assumptions, and are subject to change
without notice. How this information affects Fannie Mae will depend on many
factors. Although the ESR Group bases its opinions, analyses, estimates,
forecasts, and other views on information it considers reliable, it does not
guarantee that the information provided in these materials is accurate,
current, or suitable for any particular purpose. Changes in the assumptions or
the information underlying these views could produce materially different
results. The analyses, opinions, estimates, forecasts, and other views
published by the ESR Group represent the views of that group as of the date
indicated and do not necessarily represent the views of Fannie Mae or its
Fannie Mae enables people to buy, refinance, or rent a home. We play a leading
role in America's economic recovery today and in building a better housing
finance system for the future.
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SOURCE Fannie Mae
Contact: Resource Center: 1-800-732-6643, or Pete Bakel, +1-202-752-2034
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