“Our June survey results show the positive impact on housing of job and income growth,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The expectation of higher rents is a natural outgrowth of increasing household formation by newly employed individuals putting upward pressure on rental rates. A complementary rise in the good time to sell measure suggests that limited inventory, which is putting upward pressure on house prices, gives an increasing advantage to sellers. Together, these results point to a healthier home purchase market, with more renters likely to find owning to be more cost-effective than renting and more sellers likely to put their homes on the market.”
SURVEY HIGHLIGHTS: Homeownership and Renting
- The average 12-month home price change expectation fell to 2.6 percent.
- The share of respondents who say home prices will go up in the next 12 months fell to 47 percent. The share who say home prices will go down rose to 7 percent.
- The share of respondents who say mortgage rates will go up in the next 12 months rose 3 percentage points to 50 percent.
- Those who say it is a good time to buy a house fell to 63 percent – tying a survey low – while those who say it is a good time to sell rose to 52 percent – a new survey high.
- The average 12-month rental price change expectation fell to 4.2 percent.
- The percentage of respondents who expect home rental prices to go up rose to 59 percent – a new survey high.
- Those who think it would be easy to get a home mortgage remained at 50 percent, while those who think it would be difficult remained at 46 percent.
- The share who say they would buy if they were going to move fell 2 percentage points to 64 percent, while the share who would rent increased to 30 percent.
- The share of respondents who say the economy is on the right track increased by 1 percentage point to 39 percent, while those who say the economy is on the wrong track fell by 1 percentage point to 51 percent.
- The percentage of respondents who expect their personal financial situation to get worse over the next 12 months fell back to 10 percent – tying a survey low.
- The share of respondents who say their household income is significantly higher than it was 12 months ago fell 1 percentage point to 27 percent.
- The percentage of respondents say their household expenses are significantly higher than they were 12 months ago remained at 31 percent.
For detailed findings from the June 2015 survey, as well as technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey page on fanniemae.com. Also available on the site are in-depth topic analyses, which provide a detailed assessment of combined data results from three monthly studies. The June 2015 National Housing Survey was conducted between June 1, 2015 and June 23, 2015. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.
Source: Fannie Mae