Homeowners Bullish on Home Prices?
Even so, Fannie Mae reports that Americans expect residential home prices to rise by 1.3% over the next year, as confidence in the economy rose to 37%, according to the survey, up from 35% in April. Consumers also reported "higher incomes" and more say that it's a "good time" to sell a home.
Some other highlights from the study include:
12% told Fannie Mae their personal financial situation will worsen in the next 12 months, consistent with February and March as the lowest value in more than a year.
23% of respondents expect an increase in their personal income from 12 months ago, a 2% increase from March and the highest level recorded during the past year.
32% of respondents expect home prices to increase over the next 12 months, a slight decline from the sharp spike last month.
Maybe homeowners are simply donning those rose-colored glasses, which would be understandable after five years of steadily sour news on the housing front. But it's more likely that consumers are looking around, seeing neighbors sell their homes, and noticing that the prices for those homes are higher than they were a year ago.
It may just be a temporary blip, but for now, Americans are more bullish on their home values than they have been in years, and that's good news for the economy.