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Consumers Show Growing Positive Feelings Toward Homeownership
|More people are looking to buy a home.
Tuesday, July 10th, 2012
While sustained growth has still failed to create a strong hold across the country, a recent survey finds that many people feel more positive about buying a home than they have been during the past two years.
According to the latest National Housing Survey from Fannie Mae, 35 percent of consumers feel that home prices will rise during the next year, which represents the most positive response since the start of the survey in June 2010. The average increase seen was 2 percent.
"While consumers remain cautious about the general economy, their attitudes toward the housing market continue to improve," said Doug Duncan, senior vice president and chief economist of Fannie Mae.
More looking to buy homes for sale, fewer renting
Consumers also expressed a stronger desire to buy a home in the near future. When asked whether they would buy or rent their next home, 69 percent of respondents responded that they would purchase, which was up from just 63 percent last month and was the highest ever recorded. Just 27 percent said they would most certainly rent.
Many expect rental costs to spike. When looking at the next 12 months, 48 percent of people expect rental prices to increase, while just 5 percent expect them to drop. The average anticipated rental price increase was 4 percent, which was roughly the same as the previous report.
Household finances improving for some
With rising rental costs, some consumers are less optimistic about their own personal financial situation than they have been in the past.
Just 18 percent of survey respondents said that their income was higher than it was a year ago, which is the lowest seen in eight months and a drop of four percentage points from the previous month. In addition, 85 percent of consumers expected their situation to either stay the same or improve over the next year.
Expenses were seen as roughly steady, with 55 percent saying that their expenses have not changed significantly over the past year.
Those findings have also been echoed by the most recent Consumer Reports Index. The report found that consumers' measure of general financial help has risen significantly. The organization said the index has increased to 53.1, which was the highest seen since late 2008.
"This positive start to the summer, with all measures moving in a favorable direction, indicates a better economic picture overall," said Ed Farrell, director of Consumer Insight at the Consumer Reports National Research Center. "Over the past four years, we have seen that gains can prove to be fragile. Holding and building on these improvements will depend most on continued job growth to ensure a durable gain in the consumer outlook."
National real estate trends have a major impact on the real estate market on a daily basis. Keeping up-to-date on the latest news and notes posted by GL Homes can make sure those looking for South Florida homes know exactly how the current market will affect them.