Sellers, buyers, renters all confident
The housing market is on an upswing — at least that's what most American buyers, sellers and even renters think. According to Fannie Mae's Home Purchase Sentiment Index (HPSI), all three are feeling optimistic about their chances in today's market.
A good time to buy
From August to September, the number of consumers who said now is a good time to buy rose by 10 percent, clocking in at 28 percent. Renters, in particular, reported a rise in buying optimism, according to Fannie Mae.
"Renter respondents, in particular, buoyed the net good time to buy component, showing a substantial upward change in optimism in September," the GSE reported.
The growing optimism may stem from the idea that home price growth is starting to slow. According to the Index, the share of consumers who think prices will go up in the next year dropped eight percentage points since August. The Index also indicated that consumers are feeling slightly more secure in their jobs.
According to Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, loosening inventory may be spurring confidence as well.
"Details in the survey showed a meaningful pickup in the good time to buy component, especially from the renter respondents," Duncan said. "Additionally, perceptions of easing inventory helped boost the net share saying that now is a good time to buy, which is consistent with less bullish home price appreciation sentiment during the month."
A good time to sell
Sellers are also feeling good about entering the market, according to the Index. The share of respondents who said now is a good time to sell a home hit 38 percent in September. That marks an increase of two percentage points over the month and 23 over the year.
Loosening lending standards and more new construction are also helping homeowners feel confident about today's real estate market. According to the National Association of Home Builders, spending on new residential construction is up for the year. The Mortgage Bankers Association also showed credit availability increased this summer.
Wallick & Volk mortgage professionals are able to assist you with the financing of your new home. Give us a call to start the process. www.wvmb.com