WASHINGTON, May 7, 2014 /PRNewswire/ -- Americans'
outlook toward the housing market continued to improve in April,
perhaps foreshadowing an increase in housing activity in the coming
months, according to results from Fannie Mae's April 2014 National Housing Survey. The share of
respondents who believe now is a good time to sell a home increased
for the third consecutive month to an all-time high of 42 percent,
an encouraging sign since many potential homebuyers will need to
sell a home before entering the purchase market. In addition, the
share of respondents who say now is a good time to buy a home
remained steady at 69 percent following a gradual climb since the
beginning of the year. Notably, although consumers remain generally
split regarding their ability to get a mortgage, fewer respondents
are concerned about losing their job – which may encourage
potential homebuyers to enter the market.
"Our April survey results suggest that consumer confidence is
moving in a positive direction," said Doug
Duncan, senior vice president and chief economist at Fannie
Mae. "Consumer attitudes about the current home selling environment
have improved and now are at the most favorable level we've seen in
the survey's four-year history. Consistent with Friday's upbeat
jobs report, concern about job loss among employed consumers also
has hit a record survey low. These results are in line with our
expectations for increased housing activity and gradual
strengthening of the housing market going into the spring and
summer selling season."
SURVEY HIGHLIGHTS
Homeownership and Renting
- The average 12-month home price change expectation increased
from last month, to 2.9 percent.
- The share of respondents who say home prices will go up in the
next 12 months increased slightly to 50 percent, and the share who
say home prices will go down held steady at 5 percent, the all-time
survey low.
- The share of respondents who say mortgage rates will go up in
the next 12 months decreased to 52 percent, and those who said they
will go down increased to 7 percent.
- Those who say it is a good time to buy a house held steady at
69 percent, and those who say it is a good time to sell a house
increased 4 percentage points from last month to 42 percent, an
all-time survey high.
- The average 12-month rental price change expectation decreased
slightly from last month to 4.0 percent.
- Fifty-two percent of those surveyed said home rental prices
will go up in the next 12 months, holding steady from last month.
Two percent of respondents said home prices will go down – tying
the all-time survey low.
- Forty-five percent of respondents thought it would be easy for
them to get a home mortgage today, falling 7 percentage points from
last month.
- The share who say they would buy if they were going to move
decreased 3 percentage points to 65 percent.
The Economy and Household Finances
- The share of respondents who say the economy is on the right
track increased 2 percentage points from last month to 35
percent.
- The percentage of respondents who expect their personal
financial situation to stay the same over the next 12 months
decreased 4 percentage points to 41 percent.
- The share of respondents who say their household income is
slightly lower than it was 12 months ago decreased 2 percentage
points to 12 percent, tying the all-time survey low.
- The share of respondents who say their household expenses are
significantly higher than they were 12 months ago increased 6
percentage points to 39 percent.
The most detailed consumer attitudinal survey of its kind, the
Fannie Mae National Housing Survey polled 1,000 Americans via live
telephone interview to assess their attitudes toward owning and
renting a home, home and rental price changes, homeownership
distress, the economy, household finances, and overall consumer
confidence. Homeowners and renters are asked more than 100
questions used to track attitudinal shifts (findings are compared
to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and
shares monthly and quarterly results so that we may help industry
partners and market participants target our collective efforts to
stabilize the housing market in the near-term, and provide support
in the future.
For detailed findings from the April
2014 survey, as well as a podcast providing an audio
synopsis of the survey results and technical notes on survey
methodology and questions asked of respondents associated with each
monthly indicator, please visit the Fannie Mae Monthly National
Housing Survey page on fanniemae.com. Also available on the site
are in-depth topic analyses, which provide a detailed assessment of
combined data results from three monthly studies. The April 2014 Fannie Mae National Housing Survey was
conducted between April 1, 2014 and
April 21, 2014. Most of the data
collection occurred during the first two weeks of this period.
Interviews were conducted by Penn Schoen Berland, in coordination
with Fannie Mae.
Opinions, analyses, estimates, forecasts, and other views of
Fannie Mae's Economic & Strategic Research (ESR) Group included
in these materials should not be construed as indicating Fannie
Mae's business prospects or expected results, are based on a number
of assumptions, and are subject to change without notice. How this
information affects Fannie Mae will depend on many factors.
Although the ESR Group bases its opinions, analyses, estimates,
forecasts, and other views on information it considers reliable, it
does not guarantee that the information provided in these materials
is accurate, current, or suitable for any particular purpose.
Changes in the assumptions or the information underlying these
views could produce materially different results. The analyses,
opinions, estimates, forecasts, and other views published by the
ESR Group represent the views of that group as of the date
indicated and do not necessarily represent the views of Fannie Mae
or its management.
Fannie Mae enables people to buy, refinance, or rent a
home.
Visit us at
http://www.fanniemae.com/progress.
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SOURCE Fannie Mae