Optimism About Income Helps Housing Sentiment

Cynthia BaileyHome Buyers, Home Sellers, Luxury Homes, Real Estate Investing, Second HomesLeave a Comment

For a while now, there’s been a balance between the feeling that buying a home is becoming less affordable and the perception that the economy is getting stronger. Americans are concerned about rising home prices and mortgage rates but, at the same time, they’re also seeing more job opportunities and higher wages. How this might affect a decision about making a move is fairly obvious. In short, your feelings about whether or not it’s a good time for you to buy a house are likely tied to your feelings about your job security and income. If you’re feeling confident in your money, you’re more likely to consider buying. Which is part of the reason Fannie Mae’s monthly Home Purchase Sentiment Index has been relatively unchanged over the past several months. The index – which measures Americans perceptions of the housing market, economy, and their personal financial situation – was virtually flat in November from the month before. Doug Duncan says housing sentiment has cooled but it’s been offset by optimism about the economy. “Consumers perceptions of growth in their household income reached a survey high this month, helping to absorb some of the impact of increasing mortgage rates on housing market activity,” Duncan said. “Meanwhile, the net share of consumers expecting home prices to increase over the next 12 months continues to moderate, dropping by 13 percentage points since this time last year.” More here.

About the Author

Cynthia Bailey

Cynthia Bailey

Leveraging my experience of service to others, my passion for real estate and degree in Interior Design I seek to provide my clients with the best possible experience in finding their perfect place or selling their unique home. I believe in representing and educating my clients so they can make the best decision possible, while also providing advice on staging and preparing their home for sale. The seller is able to highlight the beauty of their home while the buyer is able to envision their future home. I call this the “win-win” of real estate.

Leave a Reply

Your email address will not be published. Required fields are marked *