More Home Owners Warm Up to Idea of Selling
July 8, 2015
Home owners are becoming more upbeat about potentially selling their home, which should bode well for purchase activity this year, according to Fannie Mae’s June 2015 National Housing Survey, a survey of 1,000 Americans about their attitudes toward housing. Thanks to increased job and income growth, more consumers are viewing the current selling climate more optimistically, which could help reverse the low inventory.
The share of Americans surveyed who say now is a good time to sell reached a new survey high in June, increasing three percentage points to 52 percent. It’s the first time the metric had crossed the 50 percent threshold in the survey’s history.
Also, the number of Americans who say they expect home rental prices to rise in the next 12 months also reached an all-time survey high in June at 59 percent.
“With an increase in housing supply from those ready to sell, combined with higher rental cost expectations, more potential home buyers may be encouraged to leave the sidelines,” according to Fannie Mae’s survey.
The limited inventory of homes for sale that has plagued many markets has been putting upward pressure on home prices and may also be signaling an increasing advantage to sellers. Also, renters are facing rising costs.
“Together, these results point to a healthier home purchase market, with more renters likely to find owning to be more cost-effective than renting and more sellers likely to put their homes on the market,” says Doug Duncan, senior vice president and chief economist at Fannie Mae.
Also, among the survey’s findings:
- The average price change expectation dropped to 2.6 percent for the next 12 months.
- The number of survey respondents who believe home prices will rise in the next 12 months dropped to 47 percent.
- The share of respondents who say it’s a good time to buy a house dropped to 63 percent – tying a survey low – while those who say it’s a good time to sell rose to 52 percent – a new survey high.
- The share of respondents who say it would be easy to get a home mortgage remained at 50 percent, while those who think it would be difficult remained at 46 percent.
Source: Fannie Mae
Updated: November 25, 2020