Americans Growing More Confident In Housing Market
November 9, 2012
Americans are growing ever more confident in the housing market, according to Fannie Mae’s October 2012 National Housing Survey. The survey gauges consumers’ attitudes toward owning a home, renting, prices, mortgage rates, household finances, and overall confidence in the economy.
October’s results found Americans’ expectations on the rise. Among the highlights, only 10 percent of respondents said they expect home prices to fall over the next year, the lowest level in the survey’s history. Participants also believe it is a good time to buy a home and an increasing number said it’s a good time to sell. Doug Duncan, senior vice president and chief economist of Fannie Mae, said increasing household formation and an improving labor market has added additional momentum to the housing recovery. According to Duncan, expected increases in home prices and rent may encourage more consumers to buy, which would add further strength to the recovery
The National Association of Home Builders Improving Markets Index identifies metropolitan areas that have experienced at least six consecutive months of improvement in housing permits, employment, and home prices since their respective bottoms. In November, the list of improving markets expanded by 22 metros bringing the total for the month to 125. It was the third consecutive monthly gain and nearly 100 cities better than last November’s total. Barry Rotenberg, chairman of the NAHB, said the housing recovery is firmly taking root and helping generate jobs and growth across the country. The geographic diversity of the index also improved, with 38 states and the District of Columbia now represented on the list. New additions to the index include San Diego, Calif.; Gainesville, Ga.; Omaha, Neb.; Louisville, Ky.; and Charlotte, N.C.