Another interesting analysis report released by Fannie mae couple of weeks ago gives an important fact about how people are thinking about the housing market and their confidence level.

The gap between those who say it’s a good time to buy a home and those who say it’s a good time to sell is growing larger. Sixty-eight percent of Americans say now is the time to buy, a month-over-month rise of 3 percentage points, according to Fannie Mae’s November 2014 National Housing Survey of 1,000 respondents. On the other hand, the number of Americans who say it’s a good time to sell fell 5 percentage points to 39 percent. Still, 44 percent of Americans remain optimistic that home prices will rise in the next 12 months, while the share who say home prices will drop is down to 6 percent, the survey found.

Here’s one of the most encouraging signs for the housing market’s future: Consumers’ personal financial outlook is improving. “We expect consumer attitudes toward housing to improve as the pickup in the overall economy lifts employment and income prospects,” Duncan says.

Forty-six percent of Americans say they expect their personal financial situation to improve over the next 12 months. That’s close to the survey’s all-time high.
45 percent of respondents say they believe mortgage rates will rise in the next 12 months (a drop of 3 percentage points from the previous month);
53 percent say they expect rental prices to rise in the next 12 months (a rise of 4 percentage points from last month);
62 percent say they would buy a home if they were going to move, while the share who say they’d rent rose to 31 percent;
25 percent say their household income is significantly higher than it was 12 months ago (the same as last month);
36 percent say their household expenses are significantly higher than they were 12 months ago (the same as last month).

Being exposed to the outlook of the report and current economic condition, housing has come a long way and this year is not steady growth compared to last year. It’s going to be rocky ride next year with oil price plummeting and job market might be shrinking in different sectors. It’s going to be another interesting year.

Source: Fannie Mae

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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