Despite recent gains, the future of the housing market is still uncertain. Developments such as as the impending fiscal cliff could have a serious impact on activity. Although the real estate industry could be met with obstacles in the coming months, consumers are still confident about the future.
Last month, the average consumer said they expect home prices to increase 1.7 percent next year, according to a survey conducted by Fannie Mae. In contrast, 14 percent believe prices will decline during the same period, marking a 4 percent drop from October.
“Consumer attitudes toward both the economy and the housing market continue to gather momentum, with many of our 11 key National Housing Survey indicators at or near their two-and-a-half-year highs,” said Fannie Mae senior vice president and chief economist Doug Duncan. “On the housing front, attitudes about the current selling environment continue to improve, with a significant increase in those saying it would be a good time to sell.”
Buying, selling sentiment contrast
In the wake of the real estate bubble burst, property values plummeted more than 30 percent in some areas. As a result, many homeowners chose not to list their homes on the market. This would have required many owners to take a loss on their investment if they sold their properties.
However, as prices continue to appreciate, 23 percent of respondents feel it’s a good time to sell, the survey found. While this is still a small share, it was a 5 percentage point improvement from the previous month.
On the other hand, 67 percent of consumers feel it’s a good time to buy, the report said. This share was more or less unchanged from October.
Consumers still unsure about the economy
Although Americans are more confident in the housing market, some are still unsure about the economy’s recovery. Roughly 50 percent of respondents feel the economy is on the wrong track. Because the housing market and economy are so closely intertwined, this could dampen real estate activity in the near future.
Regardless of what happens in 2013, prospective buyers may still have some mortgage options to make the transition to homeownership. Options such as VA or FHA mortgage loans could come in handy during this pursuit.
Arming yourself with the most up-to-date housing market details is a great way to stay informed of current mortgage loan rates. Freedom Mortgage offers some of the most extensive news, homeowner tips and personal finance information in the industry.
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