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Optimism Buoys National Housing Survey Results

by devteam February 10th, 2015 | Share

Fannie Mae said today that its monthly National HousingrnSurvey (NHS) portrayed increasing optimism as both employment and overallrneconomic figures improved.  Morernrespondents reported their own financial situations were improving andrnattitudes toward housing also brightened.</p

The share ofrnrespondents who said their household income is significantly higher than it wasrn12 months ago rose 4 percentage points to 29 percent, and the share expectingrntheir personal financial situation to improve over the next year increased torn48 percent – both all-time survey highs. rnAt the same time the number of consumers who see this as a good time tornbuy a home rose 3 percentage points and those seeing it as a good time to sellrnrose 4 to scores of 67 and 44 respectively. rnThe latter number is an all-time survey high.</p

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Even better news forrnthe housing industry, 66 percent of respondents said they would buy rather thanrnrent their next residence.  This 5 point month-over-monthrnincrease marked the first time this measure has risen since last September.</p

Doug Duncan, FanniernMae’s senior vice president and chief economist said, “Consumersrnare as positive about their personal finances at the start of 2015 as they havernbeen since we launched the National Housing Survey in 2010, and this optimismrnseems to be spilling over into housing market attitudes.  Consumers are more optimistic about thernenvironment both for buying and for selling a home today, and the share whornplan to own on their next move has jumped back up, reversing a three-monthrntrend toward renting. </p

Duncan said the resultsrnare consistent with another survey Fannie Mae conducts to assess lenderrnsentiment.  Both surveys indicate thatrn2015 is getting off to a good start and are consistent with Fannie Mae’s expectationsrnthat strengthening employment and economic activity will boost the speed of thernhousing recovery.</p

Expectations for home price increasesrnalso jumped with 49 percent expecting price hikes over the next 12 months, up 3rnpoints, and the size of that increase rising from 2.3 to 2.5 percent.  At the same time slightly fewer respondents anticipaternincreases in rents, down one point to 52 percent, and the estimated size of anyrnincrease fell 5 basis point to 3.6 percent. </p

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Finally, the right track-wrong trackrnnumber has shifted significantly since November with the right track numberrnincreasing 8 percentage points over that period to 41 percent.  The gap between the two sentiments has now narrowedrnto 5 percentage points.  </p

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The National Housing Survey isrnconducted by phone among a panel of 1,000 Americans, both homeowners andrnrenters.  Respondents are asked more thanrn100 questions to assess their attitudes toward owning and renting a home, homernand rental price changes, homeownership distress, the economy, householdrnfinances, and overall consumer confidence. rnThe survey has been conducted monthly since June 2010.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.

About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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