WASHINGTON – June 6, 2016 – The number of homebuyers who say it’s a good time to buy dipped to an all-time survey low in Fannie Mae’s latest Home Purchase Sentiment Index.
But homeowners who say it’s a good time to sell soared to an all-time survey high.
The market’s disconnect is likely due, in part, to the limited number of homes for sale in many markets, allowing sellers to face less competition and ask for higher home prices. On the other hand, buyers have fewer choices and are stuck paying those higher prices, sometimes in multiple-bid situations.
“We can partially attribute the sizable gain in April in home selling optimism both to a correction for last month’s unexpected dip and to typical seasonal strength in housing activity in the spring and summer,” says Doug Duncan, senior vice president and chief economist at Fannie Mae.
“Even after accounting for these factors, continued tight housing supply has led to renewed strength in home price appreciation, making selling a home a more attractive prospect this year in particular,” he adds.
Highlights from Fannie Mae’s Home Purchase Sentiment Index
30 percent of Americans say now is a good time to purchase a home – a drop of 3 percentage points from the previous month and an all-time survey low.
15 percent of Americans say now is a good time to sell a home – an all-time survey high.
More consumers think home prices will rise over the next 12 months, and slightly fewer consumers also expect mortgage rates to go up over the next year.
The percentage of respondents who say they’re not concerned with losing their job increased 6 percentage points to 74 percent, nearly a 7 percentage point decrease in March.
The percentage of respondents who say their household income is significantly higher than it was 12 months ago held at 11 percent.
Source: Fannie Mae
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