New Fannie Mae Survey Shows Cloudy Housing Outlook
Consumers have gloomy expectations for housing
Fannie Mae (the Federal National Mortgage Association) has released a new June 2011 study showing gloomy attitudes by Americans towards home ownership as the nation struggles to emerge from the housing led recession.
The survey showed that a majority of the 1,000 respondents expected home prices to decline over the next 12 months by 0.5%. This is a significant change from the previous month of May, when the respondents expected home prices to increase by 0.7%.
Twenty-two percent of respondents expected home prices to increase over the next 12 months – down by 6% since May. However, fully 25% expected a decline in home prices-up by 6% since May.
Regarding mortgage rates, significantly fewer Americans expected home mortgage rates to increase up in the next 12 months – down by 9% since May and down by 15% since April.
Confirming the general perception of a buyers market, 69% of respondents continue to believe that it is a good time to buy a home, while only 11% thought that now is a good time to sell a home.
Rentals
Regarding the rental market, the survey respondents expected home rental prices to go up by 3.9% over the next year, the highest mark observed in the survey to date.
Finally, consistent with previous months, 2 in 3 respondents said they would buy if they were going to move, while 3 in 10 said they would rent their next home.
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