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 More good news for the American housing industry--both the number of sellers who think now is a good time to sell and the number of buyers who think that now is a good time to buy spiked from April to May. According to Fannie Mae, this is attributable to widespread reports of rising home prices.
The percentage of respondents who say that now is a good time to sell spiked ten points in May, rising from 30 to 40 percent on a monthly basis, according to the results of Fannie Maes May 2013 National Housing Survey. This means that the number of sellers who are confident in the housing market has more than doubled in the last year. According to Fannie Mae, only 16 percent said "now is a good time to sell" in April 2012.
Doug Duncan, senior vice president and chief economist at Fannie Mae explains, "sentiment toward selling a home appears to be catching up with the strengthening housing market." Duncan further commented, "the share of consumers who think its a good time to sell a home spiked this month, the largest increase in the surveys three-year history."
Projecting what these new numbers could mean for the housing market for the coming months, Duncan commented," this jump may foreshadow a gradual return to more normal levels of housing supply from their lows of recent months.In turn, increased housing supply could serve to temper increasing consumer home price expectations. We will closely watch the potential impact of rising mortgage rates on consumer housing sentiment in the coming months."
The survey also found that the share of respondents who said now is a good time to buy hit a record high--spiking from 5 percentage points to 76 percent. Also, respondents average 12 month home price change expectation hit a survey high, leaping from 2.7 percent in April to 3.9 percent in May.
Photo source: Chicago Agent Magazine
Posted on June 12, 2013 14:44:42 by  Scott.Shields
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