Almost Half Of Consumers Surveyed Think Home Prices Will Rise In Next Year

Forty-eight percent of Americans surveyed feel home prices will increase in the next twelve months and only 7 percent think home prices will decline, accordion to Fannie Mae’s May 2014 National Housing Survey which was just released.  As for the economy, consumers weren’t so optimistic as, according to the report, 57% of those surveyed  feel the economy is headed the wrong direction.

Other highlights from the Fannie Mae National Housing Survey for May 2014:

Homeownership and Renting

• The average 12-month home price change expectation remained unchanged from last month, at 2.9 percent.
• The share of respondents who say home prices will go up in the next 12 months fell to 48 percent, and the share who say home prices will go down increased to 7 percent.
• The share of respondents who say mortgage rates will go up in the next 12 months continued on a downward trend, dropping to 49 percent.
• Those who say it is a good time to buy a house fell slightly to 68 percent, and those who say it is a good time to sell a house increased to 43 percent, a new all-time survey high.
• The average 12-month rental price change expectation decreased slightly to 3.9 percent.
• Fifty-one percent of those surveyed said home rental prices will go up in the next 12 months, while 3 percent of respondents said home prices will go down.
• Forty-nine percent of respondents thought it would be easy for them to get a home mortgage today, rising 4 percentage points from last month.
• The share who say they would buy if they were going to move increased slightly to 66 percent.

The Economy and Household Finances

• The share of respondents who say the economy is on the right track increased 3 percentage points from last month to 38 percent.
• The percentage of respondents who expect their personal financial situation to get better over the next 12 months fell slightly to 42 percent.
• The share of respondents who say their household income is significantly higher than it was 12 months ago decreased 4 percentage points to 21 percent.
• The share of respondents who say their household expenses are significantly higher than they were 12 months ago decreased 5 percentage points to 34 percent.

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