Despite uncertainty surrounding the fiscal cliff, Americans are showing increased confidence in the housing market and the direction of the economy, according to Fannie Mae’s November 2012 National Housing Survey. Let me share the highlights with you!
Consumer Opinions on Housing
According to the survey, the share of respondents who say now is a good time to sell a home jumped 5% in November to 23%. This is the highest level of confidence since the survey began in June 2010.
41% of respondents expect mortgage rates to go up in the near future, which is an increase of 4% over the prior survey.
Those expecting home prices to go down within the next year rose by 4 percentage points, to 14% percent over the prior month
Meanwhile, 37% of respondents believe home prices will go up in the next 12 months, tying the survey high.
51 % of respondents also believe it’s now easier to get a home mortgage, marking the highest rate since the survey’s inception.
Shrinking home inventory, rising home values, and pent-up demand from home buyers is leading to improved market activity. Home buying activity is also boosted by a brighter outlook for jobs and consistently low mortgage interest rates.
Consumer Opinions on the National Economy
Positive housing indicators are connected to improving opinions regarding the nation’s overall economic picture.
When asked about the economy, those who say it is on the wrong track dipped 6 percentage points since October, and a total of 25 percentage points in the past year. Fewer consumers are seeing the economic glass as half-empty.
48% of those surveyed say home rental prices will go up in the next 12 months.
21% percent of respondents say their household income is significantly higher than it was 12 months ago.
Inflation remains in check. 56 % of respondents said their household expenses stayed the same compared to 12 months ago.
Guidance for the DC Metro Home Market
These are strong positives for our national housing outlook, and they echo sentiments of home buyers and sellers throughout the DC metropolitan area. As a result, DC Metro area real estate is positioned to continue price gains in 2013. We are watching the national budget discussions carefully, however, and we will observe how the market responds to those issues.
As your DC Metro area residential real estate expert, I can guide you through our changing market conditions in Bethesda, Chevy Chase and the surrounding communities. Contact me for the latest DC area home sale statistics and DC area market trends!
When you are buying or selling a home in the Washington DC area, turn to me for professional guidance you can trust. My team and I deliver the reliable information and high quality service you deserve!