Tuesday, October 9, 2012
Good news in Housing?
Americans responding to the Fannie Mae's September edition of its National Housing Survey displayed greater optimism about the housing market, homeownership, and the country's economy in general. Fannie Mae said that there has been a gradual improvement in attitudes about housing over the last few months but consumer attitudes about the economy as a whole improved substantially in the most recent survey, "breaking the progression of waning confidence seen during much of this year."
"Consumers are showing increasing faith in the nascent housing recovery," said Doug Duncan, senior vice president and chief economist of Fannie Mae. "Home price change expectations have remained positive for 11 straight months, and the share expecting home price declines has stabilized at a survey low of only 11 percent. Furthermore, the Federal Reserve's latest round of quantitative easing has caused a large drop in mortgage. Friday's September jobs report, including the strong upward revisions for prior months, a sizable increase in earnings, and a sharp decline in the unemployment rate, should provide further impetus for improving consumer confidence in the housing market."
Fannie Mae's survey polls 1,000 individuals by phone each month. The survey includes homeowners with and without a mortgage on their homes and renters. Respondents are asked more than 100 questions which are used to track attitudinal shifts. The survey has been conducted since June 2010,
The percentage of respondents who expect home prices to rise over the next year is now at 37 percent, up from 18 percent one year ago and the highest level in the survey's short history. Only 11 percent think prices will experience further declines. The average increase expected by respondents is 1.5 percent, down slightly from each of the previous two months but the 11th straight month that price change expectations have been in positive territory.