BUYERS’ AND SELLERS’ CONFIDENCE DIVERGES


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Article courtesy of Realtor Magazine 

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.

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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.

Fannie’s latest survey results “support the 2014 trend of gradual — but often sporadic and unspectacular — improvement across a range of indicators measuring consumer attitudes toward housing,” says Doug Duncan, Fannie Mae’s chief economist. “This mirrors the uneven recovery in housing activity this year.”

Here’s one of the most encouraging signs for the housing market’s future: Consumers’ personal financial outlook is improving. 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.

“We expect consumer attitudes toward housing to improve as the pickup in the overall economy lifts employment and income prospects,” Duncan says. “However, a sustained improvement in sentiment that could support a robust housing recovery, as policy support is removed, will require meaningful gains in household income. While such gains have so far been elusive, the strength in the November jobs report, which points to faster growth in labor income in the current quarter, marks a good start.”

Also, among the survey’s findings:

  • 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).

Source: Fannie Mae


About Brian Heafy

After a 30 year career in the information technology/professional services industry Brian began his second career as a real estate professional in 2012. Brian began his career in 1982 with the United States Marine Corps as a systems analyst providing software project management and implementation services to Marine Corps Aviation Logistics Squadrons in Iwakuni, Japan and later as a defense contractor assigned as lead technical program manager to the Navy Management Systems Support Office in San Diego. Brian went on to serve as technology manager for the City of Coral Springs, then joined a publicly traded government (ERP) software and professional services provider in Lake Mary, Florida as VP of the company's Public Safety & Justice Systems group where he and his teams supported over 450 small, medium and large Police, Fire, Courts and EMS agencies across the U.S. and Caribbean. Brian also served in technology management positions supporting commercial off the shelf software enterprise resource management systems finance and administration application software and public safety and justice systems application software projects for the City of Orlando and Orange County Clerk of Courts. Brian's in-depth understanding of governmental operations and contract management is a benefit to his real estate clients, so much of what gets accomplished in today's real estate industry deals with understanding government databases, brokerage disclosures, banking and governmental regulations each with their own set of established procedures - at all levels of government (local, county, state, federal). Brian holds a Bachelor’s degree in Business from Barry University. A Licensed Florida Real Estate Broker and member of the Greater Orlando Regional Realtors Association, member of the Marine Corps Association and former Web Sergeant for the United States Marine Corps League in Orlando, Florida. A native Floridian Brian and his wife Yoshiko have been married over 32 years and have two grown children.