Home-selling confidence beat buyers’ confidence for only the second time since Fannie Mae began its sentiment index
May saw a boost in home seller confidence, as Fannie Mae’s sentiment index reached a new high, with 32% of respondents thinking it was a good time to sell. May marked only the second time since Fannie Mae started its Home Purchase Sentiment Index (HPSI) that people thinking it was a good time to sell surpassed the net share of those who said now is a good time to buy.
On the contrary, home buying reached a new survey low, as the net share of Americans who felt now is a good time to buy decreased by eight percentage points to 27%.
“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market, perhaps due in part to concerns over finding an affordable replacement home. Prospective homebuyers are likely to face continued home price increases as long as housing supply remains tight.”
Fannie Mae’s HPSI dipped by 0.5 percentage points last month to 86.2, while it increased by 0.9 percentage points year over year.
In addition, the net share of Americans who said that home prices will increase went down by five percentage points to 40% while those who said mortgage rates will decrease over the next 12 months rose five percentage points to -52%.
Those who said they are not concerned about losing their job fell by 6 percentage points to 71%, and those who said their household income is significantly higher than it was a year ago went up by five percentage points to 18%.
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Housing sentiment improves after March drop
On the contrary, home buying reached a new survey low, as the net share of Americans who felt now is a good time to buy decreased by eight percentage points to 27%.
“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market, perhaps due in part to concerns over finding an affordable replacement home. Prospective homebuyers are likely to face continued home price increases as long as housing supply remains tight.”
Fannie Mae’s HPSI dipped by 0.5 percentage points last month to 86.2, while it increased by 0.9 percentage points year over year.
In addition, the net share of Americans who said that home prices will increase went down by five percentage points to 40% while those who said mortgage rates will decrease over the next 12 months rose five percentage points to -52%.
Those who said they are not concerned about losing their job fell by 6 percentage points to 71%, and those who said their household income is significantly higher than it was a year ago went up by five percentage points to 18%.
Related stories:
Housing sentiment improves after March drop
