Home price expectations moved from negative to positive territory in November for the first time in six months, according to Fannie Mae’s November National Housing Survey. Respondents to the survey said they expect home prices to increase by 0.2 percent over next year.
“Though their home price expectations have become slightly positive, consumers remain concerned about the direction of the economy and continue to view their household finances as being relatively flat,” said Doug Duncan, vice president and chief economist of Fannie Mae. “Most Americans expect no improvement in their personal financial situation in the next 12 months and will likely remain wary about undertaking the significant financial obligation associated with homeownership until their view of their income, expenses, and job security heads in a more positive direction.”
Highlights from the survey include:
- Nearly a quarter (22 percent) of respondents expect home prices to increase over the next year (up 3 percentage points since last month), while 22 percent say they expect home prices to decline, down 1 percentage point since last month. Fifty-three percent say prices will stay the same, a 2 percentage point drop from October.
- Approximately one-third of Americans say that mortgage rates will go up over the next 12 months, down 3 percentage points from October and a return to the level seen in September.
- Sixty-eight percent of respondents say it is a good time to buy a home (down by 1 percentage point since last month), and just 10 percent say it is a good time to sell, unchanged from the previous two months.
From C.A.R. NewsLine
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