Fannie Mae: Consumer Confidence in Home Selling Market Picks Up

Fannie Mae, Washington, D.C., said its April Home Purchase Sentiment Index rebounded from an 18-month low in March, but said overall consumer housing sentiment remained flat.

The Index increased by 3.5 points to 83.7 in April. The Good Time to Sell component approached an record survey high in April, posting the largest increase among the six Index components. The net share of consumers who think now is a good time to sell a home rose 16 percentage points. However, the Good Time to Buy component dipped to a recrord survey low, creating the narrowest gap on record between these two measures.

In addition, the survey said although the net share of consumers reporting confidence about not losing their job rose 6 percentage points, the net share of consumers reporting that their income was significantly higher than it was 12 months ago stayed flat from the prior month.

“Continued tight housing supply has led to renewed strength in home price appreciation, making selling a home a more attractive prospect this year in particular,” said Doug Duncan, senior vice president and chief economist with Fannie Mae. “This improved sentiment could provide an extra boost of much-needed supply for the spring selling season.”

Overall, the main index is up 1.4 points from a year ago. Other survey highlights:

–The net share of American who say that it is a good time to buy a house fell 3 percentage points to 30 percent, reaching a record survey low.
–Selling sentiment approached a record survey high in March, with the net percentage of those who say it is a good time to sell rising 16 percentage points to 15 percent.
–The net share of respondents who say that home prices will go up rose 3 percentage point to 37 percent, continuing the rising trend from March.
–The net share of those who say mortgage interest rates will go down fell 1 percentage point to negative 46 percent.
–The net share of respondents who say they are not concerned with losing their job rose 6 percentage points to 74 percent, nearly making up the 7 percentage point decrease in March.
–The net share of respondents who say their household income is significantly higher than it was 12 months ago remained the same at 11 percent.