Americans are more confident about their housing prospects than ever before, with more believing now is âa good timeâ 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.
âThe latest post-election surge in optimism puts the HPSI at its highest level since its starting point in 2011,â says Doug Duncan, chief economist and senior vice president at Fannie Mae. âMillennials showed especially strong increases in job confidence and income gainsâa necessary precursor for increased housing demand from first-time homebuyers.â
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 percentâanother Index highâbelieve they are secure in their jobs, and 19 percentâstill, another Index highâreport âsignificantly higherâ incomes in the past year.
Forty-five percent, at the same time, believe home prices will rise.
âPreliminary 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 Duncan says.
Source: Fannie Mae