Confidence in housing is waffling between homebuyers who are uncertain about their opportunities and sellers who are positive about their prospects, according to the recently released Fannie Mae Home Purchase Sentiment Index® (HPSI) for March.
The HPSI declined 3.8 percentage points to 84.5 last month, down from an all-time Index high in February. Those surveyed who reported it being “a good time to buy a house”dove10 percentage points to 30 percent, but those surveyed who reported it being “a good time to sell” floated up nine percentage points to 31 percent—a first, and another high.
“Home purchase sentiment gave back some of the gains accumulated over the prior two months that sent the Index to its survey high in February,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “Strong home price appreciation has turned into a double-edged sword for the housing market as it boosted the net share of consumers saying it’s a good time to sell to a record high, surpassing the plunging good time to buy indicator for the first time in the history of the survey.”
Those surveyed who believe home prices will rise dipped down one percentage point to 44 percent. Home prices were cited as the most important reason for both homebuyers’ and sellers’ sentiments. Less of those surveyed believe mortgage rates will go down in the next 12 months, dribbling five percentage points to -60 percent—a low.
Both findings point to a spring season with the potential for more supply, which has utterly failed to keep up with demand "The net share of consumers who expect mortgage rates to rise over the next year exceeded that experienced during the 2013 taper tantrum,” Duncan says. “However, the housing market could get some tailwinds from a seasonal rise in for-sale inventory, particularly as some sellers seek to lock in profits from recent rapid home price gains. The market could also get a boost from homebuyers who decide to jump into the market before rates rise further.”
Author:Sheryl Volk Phone: 561-389-8670 Dated: April 14th 2017 Views: 50 About Sheryl: ...
View our latest blog posts in your RSS reader. Click here to access.
We are a full service real estate brokerage with over 100 agents to serve you. Let us be your real estate resource. Regardless whether you need to buy or sell now, or sometime in the future, let us help you. We are no pressure and will always try and help. Contact us at 561-701-8124 now.
"Thu, May 19, 2016
Joseph Schneider went above and beyond the capacity of a realtor. He facilitated in making the process of us purchasing our first home less stressful because of his knowledge and experience. Joseph made sure that every aspect of our transaction was handled in a professional and timely manner. Whatever we asked for in our search for the perfect home, he made sure that he did his due diligence. Joseph was referred to us and we would most definitely refer him to anyone who is looking to purchase or sell a home."