WASHINGTON, June 8, 2015 /PRNewswire/ -- Consumer
attitudes about the housing market showed marked improvement last
month, strengthening the case for a lift in housing activity this
year, according to results from Fannie Mae's May 2015 National Housing Survey™. In line with
the positive May jobs report—which showed an acceleration in
average hourly earnings—and reflecting recent trends of firming
personal income growth, the share of survey respondents reporting a
significant increase in their household income climbed 4 percentage
points to a near all-time high. As job growth appears to be driving
meaningful income growth, the outlook for housing market growth
also is improving. Among those surveyed, the share who believe now
is a good time to sell a home continued its steady climb, reaching
an all-time survey high in May—six percentage points higher than at
the same time last year. Additionally, those saying they would
prefer to buy rather than rent a home on their next move increased
another three percentage points to 66 percent.
"Things are looking up for housing," said Doug Duncan, senior vice president and chief
economist at Fannie Mae. "Those saying it is a good time to sell a
house hit a survey high of 49 percent. Also, the percentage of
consumers telling us their household income is significantly higher
than 12 months ago grew six percentage points to 28 percent over
the past two months. We have found that these two indicators – good
time to sell and income growth – are key drivers for the
performance of the housing market and play an important role in our
soon to be released Home Purchase Sentiment Index™ (HPSI). The
increase in these indicators suggests our forecast of moderate
improvement in the housing market in 2015 is on course and mirrors
the near-term performance of other leading market data, including
mortgage applications and pending home sales."
SURVEY HIGHLIGHTS
Homeownership and Renting
- The average 12-month home price change expectation remained at
2.8 percent.
- The share of respondents who say home prices will go up in the
next 12 months rose to 49 percent. The share who say home prices
will go down fell to 6 percent.
- The share of respondents who say mortgage rates will go up in
the next 12 months fell to 47 percent.
- Those who say it is a good time to buy a house rose back up to
66 percent, while those who say it is a good time to sell went up 3
percentage points to 49 percent – a new survey high.
- The average 12-month rental price change expectation rose to
4.3 percent.
- The percentage of respondents who expect home rental prices to
go up rose to 55 percent.
- Those who think it would be easy to get a home mortgage
decreased by 2 percentage points to 50 percent, while those who
think it would be difficult remained at 46 percent.
- The share who say they would buy if they were going to move
rose 3 percentage points to 66 percent, while the share who would
rent fell to 27 percent.
The Economy and Household Finances
- The share of respondents who say the economy is on the right
track decreased by 4 percentage points to 38 percent, while those
who say the economy is on the wrong track rose by 3 percentage
points to 52 percent.
- The percentage of respondents who expect their personal
financial situation to get worse over the next 12 months rose to 12
percent.
- The share of respondents who say their household income is
significantly higher than it was 12 months ago rose 4 percentage
points to 28 percent.
- The percentage of respondents say their household expenses are
significantly higher than they were 12 months ago increased to 31
percent.
The most detailed consumer attitudinal survey of its kind,
Fannie Mae's 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). To reflect the growing share of
households with a cell phone but no landline, the National Housing
Survey has increased its cell phone dialing rate to 60 percent as
of October 2014. For more
information, please see the Technical Notes. 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 May
2015 survey, as well as 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 May 2015 National Housing Survey was conducted
between May 1, 2015 and May 20, 2015. 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.
To receive e-mail updates with other housing market research
from Fannie Mae's Economic & Strategic Research Group, please
click here.
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
homes.
Visit us at
http://www.fanniemae.com/progress.
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SOURCE Fannie Mae