Americans are more confident about their housing prospects than ever before, with more believing now is â€śa good timeâ€ť to buy or sell a home, according to the just-released Fannie Mae Home Purchase Sentiment IndexÂ® (HPSI), which hit high point after high point in February.
â€śThe latest post-election surge in optimism puts the HPSI at its highest level since its starting point in 2011,â€ť says Doug Duncan, chief economist and senior vice president at Fannie Mae. â€śMillennials showed especially strong increases in job confidence and income gainsâ€”a necessary precursor for increased housing demand from first-time homebuyers.â€ť
The Index registered an all-time high, 88.3, in February. Forty percent of Americans surveyed in the Index believe now is a good time to buy a home, up 11 points from January, while 22 percent believe now is a good time to sell, up 7 points to an Index high. Seventy-eight percentâ€”another Index highâ€”believe they are secure in their jobs, and 19 percentâ€”still, another Index highâ€”report â€śsignificantly higherâ€ť incomes in the past year.
Forty-five percent, at the same time, believe home prices will rise.
â€śPreliminary research results from our team find that millennials are accelerating the rate at which they move out of their parentsâ€™ 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,â€ť Duncan says.
Source: Fannie Mae