Consumer Optimism Toward Housing Continues Gradual Climb

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Americans' outlook toward the housing market continued to improve in April, perhaps foreshadowing an increase in housing activity in the coming months, according to results of Fannie Mae's April 2014 National Housing Survey.

The share of respondents who believe now is a good time to sell a home increased for the third consecutive month to an all-time high of 42% – an encouraging sign because many potential home buyers will need to sell a home before entering the purchase market, says Fannie.

In addition, the share of respondents who say now is a good time to buy a home remained steady at 69%, following a gradual climb since the beginning of the year. Notably, although consumers remain generally split regarding their ability to get a mortgage, fewer respondents are concerned about losing their job – which Fannie says may encourage potential home buyers to enter the market.

The share of respondents who say home prices will go down in the next 12 months reached an all-time survey low of 5%. Those who say it is a good time to sell a house increased four percentage points from last month to 42% – an all-time survey high.

Forty-five percent of respondents thought it would be easy for them to get a home mortgage today, falling seven percentage points from last month.

The share of respondents who say the economy is on the right track increased two percentage points from last month to 35%.

The share who say their household income is slightly lower than it was 12 months ago decreased two percentage points to 12%, tying the all-time survey low. Those who say their household expenses are significantly higher than they were 12 months ago increased six percentage points to 39%.

‘Consumer attitudes about the current home selling environment have improved and now are at the most favorable level we've seen in the survey's four-year history," says Doug Duncan, senior vice president and chief economist at Fannie Mae.

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