Takeaways:
- The number of consumers who believe now is a good time to sell a home fell to 45 percent in July.
- Those who believe it is a good time to buy dropped to 61 percent — an all-time survey low.
- The survey found that more consumers expect home prices and rents to increase in the next 12 months.
Consumers’ attitudes toward owning and selling a home were less optimistic in July.
According to Fannie Mae’s National Housing Survey, the number of consumers who believe now is a good time to sell a home fell by 7 percent to 45 percent in July.
At the same time, those who believe it is a good time to buy dropped to 61 percent — an all-time survey low.
This dip in consumer’s real estate buying/selling confidence comes as more individuals reported a negative outlook regarding personal finances and the direction of the economy.
The share of consumers saying the economy is on the wrong track rose by 3 percentage points to 54 percent in July. Additionally, those who expect their personal financial situation to improve over the next year fell to 44 percent.
Those reporting a significantly lower income compared to 12 months ago increased to 15 percent — marking the first change in this indicator in three months.
Worth noting is the survey findings are based on the responses of 1,000 Americans that were asked more than 100 questions related to the housing market, economy and their personal finances.
“It is premature to read too much into this month’s results, as the survey was taken around the time of increased global turmoil, including Greece’s potential default and China’s stock market plunge,” said Doug Duncan, SVP and chief economist at Fannie Mae.
“Most of our key indicators are as strong or stronger than they were at this time last year, which is indicative of an improving housing market this year,” he added.
The survey found that more consumers expect home prices and rents to increase in the next 12 months.
The average home price change expectation rose to 3 percent, while rents are expected to rise, on average, by 4.5 percent. Additionally, the share of respondents who say home prices will go up in the next 12 months rose to 49 percent.
