People are finally starting to think about selling houses instead of just buying them
Consumer attitudes improved in March, increasing the Fannie Mae Home Purchase Sentiment Index (HPSI) by 5.2 points compared to February. The company said four of the HPSI components rose over the month, bringing the index to 81.7.
The percentage of respondents who said it was a good time to buy One house rose from 48 percent to 53 percent and there was a 3 point decrease in those who considered timing poor. This resulted in a net of 13 points, an increase of 8 points for the month but 7 points below last year’s level.
Settings too sale a home increased even more. Sixty-one percent said it was a good time, up from 55 percent in February, while the percentage who say it was a bad time decreased from 35 percent to 28 percent. As a result, the net share of those who said it was a good time to sell has increased 13 percentage points since March 2020, up 17 percent from the previous month.
“The sharp rise in the HPSI in March reflects consumer optimism about the real estate market and the larger economy as vaccinations continue to roll out, a third round of stimulus checks have been distributed, and the home buying season has started – perhaps with Even more intense this year. As of 2020, the spring home buying season has been limited by virus lockdowns, “said Doug Duncan, senior vice president and chief economist, Fannie Mae. “Home sales sentiment has seen positive momentum in most consumer segments – near pre-pandemic levels and generally suggesting a strong sellers’ market. Alternatively, the” good time to buy “net component has increased month by month, however, it has not recovered from prepandemic levels as the home buying experience continues to be difficult for many of the same reasons, namely high prices and lack of supply. “
Half of the respondents think so Real estate prices will rise higher in the next 12 months from 47 percent in the previous month. Only 14 percent believe it will decrease, while 29 percent do not expect any change. The net positive reactions were 36 percent, 7 percent more than in the previous month and 19 percent higher than in the previous year.
income seem to be increasing for some consumers. A quarter said they were significantly higher than a year ago, compared with 17 percent in the previous month. Only 15 percent said it was lower. The net share of those who reported a significant increase rose 12 points to 10 percent.
Professional concerns hasn’t changed during the month. Eighty-two percent said they are not worried about losing their job within the next 12 months, while 17 percent said they were, which is the same as the February answers.
The mortgage rate outlook component posted the only decline. and the latest results show that only 6% of consumers believe mortgage rates will go down in the next 12 months.
The National Housing Survey, from which the HPSI is built, is conducted monthly by telephone among 1,000 consumers, both homeowners and tenants. In addition to the six questions that make up the framework of the index, respondents are asked questions about the economy, personal finances, attitudes toward getting a mortgage, and questions about tracking attitude changes.