Despite a recent slowdown in home sales, consumer attitudes towards buying and selling real estate have improved. The National Association of Realtors® (NAR) third-quarter HOME survey found increasing confidence among respondents about the direction of the economy and their personal finances. There were also more responses that it was a good time to sell a house, and among renters, that it is a good time to buy.
- Timeliness: Non-Urgent.
- Expiration: 11/30/17
Skim This First
No surprise as a result of increasing home prices, recent surveys by both NAR and FNMA show that a high percentage of homeowners believe now is a good time to sell.
Despite higher home prices, the share of renters who believe now is a good time to buy also rose during the 3rd quarter of this year.
Because rent and home prices have outpaced incomes in the past few years, renters cite challenges with saving for a down payment affecting their ability to purchase even though they increasingly believe now is a good time to buy.
- Almost 60 percent of NAR respondents believe the economy is improving compared to less than 50 percent a year ago.
- NAR chief economist Lawrence Yun attributes housing market ‘funk’ we’ve seen since Spring to the on-going scarcity of new and existing homes for sale and the pace of new home construction.
FNMA’s Home Purchase Sentiment Index (HPSI) also increased in the month of August.
FNMA attributes the rise to an increase in 2 of the 6 components of their HPSI index: 1. Good time to sell component and 2. Mortgage rates expectations component
- Respondents to FNMA’s HPSI cited home prices as the most important reason why sentiment rose for selling and declined slightly for buying.
- The net share of respondents who believe mortgage rates will go down increased 4 percentage points