Housing Survey Shows Caution and some Optimism

Fannie Mae’s latest national housing survey finds that most Americans believe the housing market has reached the bottom, but they are more cautious about owning a home. Respondents to the Fannie Mae National Housing Survey believe that home prices will hold steady (47%) or increase (31%) over the next year, and that rental prices will stay the same (46%) or go up (39%). Across the general population, the average expected rise in rental prices is four times that of home prices (3.6% versus 0.9%).

70% of Americans think it is a good time to buy a house, compared with 64% in a similar survey conducted in January 2010. But 33%—up from 30%—of all respondents said they would be more likely to rent their next home if they were to move.

Doug Duncan, vice president and chief economist, Fannie Mae, said, “These findings indicate a return to a more balanced and realistic approach toward housing. While this will likely weigh on the housing recovery in the near-term, it should, over time, help to build a stronger and healthier market focused on sustainable homeownership.  Although most Americans believe that home prices have bottomed, they are adopting a much more cautious approach toward buying.  Homeowners and renters alike continue to be wary of taking on risk, and they are less confident in the long-term outlook for housing.”

A majority of Americans (67%) continue to believe that housing is a safe investment; however, that number is down 16 percentage points from a similar survey conducted in 2003—the largest drop by far among all investment types tracked since then.  More than 70% of all respondents believe it will be harder for the next generation to buy a home, up three points from the beginning of the year.

This week, mortgage rates have hit another all-time low.  You owe it to yourself and your family to at least look at what you can buy in this market.  Call or email me to sign you up for some community searches so you can study the Mercer County homes available for sale.

Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
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