WASHINGTON – March 9, 2017 – Consumer confidence in the housing market has hit an all-time high, according to Fannie Mae's Home Purchase Sentiment Index (HPSI) in February, rising 5.6 percentage points to 88.3 – a record reading.
Five of the six components measured by the survey hit record highs as well, including the share of Americans who say it's a good time to buy a home, and those who are feeling more secure about their job.
"The latest post-election surge in optimism puts the HPSI at its highest level since its starting point in 2011," says Doug Duncan, Fannie Mae's chief economist. "Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time home buyers.
"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."
Here is a closer look at findings from Fannie Mae's latest reading from its Home Purchase Sentiment Index:
- The share of Americans who say it's a good time to purchase a home increased 11 percentage points to 40 percent – a strong rebound from last month's survey low.
- 22 percent say it's a good time to sell, up 7 percentage points from last month, also a new survey high.
- 45 percent of Americans believe that home prices will go up, increasing by 3 percentage points.
- 78 percent of Americans say they're not worried about losing their job, a 9-percentage point month-over-month increase, and another survey high.
- 19 percent of Americans say their household income is significantly higher than it was 12 months ago, also a new survey high.
Source: Fannie Mae
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