Now is a “good time” to buy or a sell a home, according to more Americans.
The Fannie Mae Home Purchase Sentiment Index® rose to 88.3 percentage points in February, an all-time high and an increase of 5.6 percentage points since February. The HPSI also increased 5.6 percentage points year-to-year.
Forty percent of Americans said it a good time to buy, an increase of 11 percent from February. Additionally, the percentage of those who think it is a good time to sell rose to 22 percent, a survey high and an increase of 7 percent from the last HPSI.
More than half (55 percent) believe mortgage rates will decline over the year, consistent with the past two months. Forty-five percent believe home prices will continue to rise, an increase of 3 percent.
“The latest post-election surge in optimism puts the HPSI at its highest level since its starting point in 2011. Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time homebuyers,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Preliminary research results from our team find that millennials are accelerating the rate at which they move out of their parents’ homes and form new households. However, continued slow supply growth implies continued strong price appreciation and affordability constraints facing millennials and first-time buyers in many markets.”
Americans are also more confident with their lives outside of housing. Seventy-eight percent reported they are not concerned about losing their job, an all-time survey high and an increase of 9 percent. Additionally, 19 percent of respondents said their household income is “significantly higher” than it was a year ago, an increase of 4 percent, and a new survey high.