Consumer Confidence On The Rise

Summary

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

Talking Points

  • 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

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Tai Anderson

Market Like A Rockstar!