Consumers continue to gain confidence in the housing market but not enough to return us to a “normal” housing market, according to the June 2014 Fannie Mae National Housing Survey. In the survey consumers are asked, among other things, what their expectations are with regard to home prices and, while the expectation is for home values to increase 2.4% in the next 12 months, this is slightly lower than indicated in the previous few months. When asked about the expectation with regard to mortgage interested rates, 55% of the consumers think interest rates will rise in the next year, this is a 6 point increase from last month.
Doug Duncan, chief economist at Fannie Mae, said “the housing recovery gained its footing” but went on to say “…we do not expect to see ‘normal’ levels of new residential construction…before the end of 2016.”
Highlights from the Fannie Mae National Housing Survey:
- 46% said home prices will rise in next 12 months, 10% said they will decline.
- 70% said it is a good time to buy a house (up from last month)
- 40% think now is a good time to sell a house (down from last month)
- Rental prices are expected to rise 4.3% in the next 12 months
- 54% think rental prices will increase in next 12 month
- 52%, a record high, said it would be easy for them to get a home mortgage today.
- 68% said if they were going to move today they would buy a home
