Buyers Seeing Good Times Ahead
Optimism for homebuying increased to record highs to start the year. Fannie Mae’s Home Purchase Sentiment Index was up 3.7 points to 89.5 in January, reversing the decline in December. The net share of those who thought now is a good time to buy rose 3 percentage points and those who thought now was a good time to sell was up 4 percentage points. The net share of optimistic sellers was 23 percentage points higher than January 2017.
There was an increase in the net shares of those expecting home prices to rise in the next 12 months (52%), those who are not concerned about losing their job (73%), and lower interest rates (minus 50%). “HPSI rebounded from last month’s dip to a new survey high in January, in large part due to the spike in consumers’ net expectations that home prices will increase over the next year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Results may continue to fluctuate over the coming months as consumers sort out the implications of the newly passed tax legislation on their household finances.”
Source: Fannie Mae