Home Buying Confidence on the Rise
Home prices are projected to increase in 2014. Although it is expected at a slower pace that last year, consumers seem to be gaining confidence in their ability to buy a home. Fannie Mae’s monthly national consumer survey report provides indicators into the opinions of Americans across the county and let’s us gain insight into consumers’ outlook for owning and renting a home. The January 2014 National Housing Survey results were published last week with some encouraging highlights.
More Americans believe that it would be easier for them to get a mortgage, according to Fannie Mae’s results. Consumer attitudes rose 2% to an all-time high of 52%. The percentage of those who think that it would be hard to get a loan dropped 3 points to 45%. These figures indicate that consumers believe mortgages are more accessible. This continued increase suggests that there can be continual improvement in the housing recovery.
Doug Duncan, Senior Vice President and chief economist at Fannie Mae said, “A majority of consumers now believe that it is getting easier to get a mortgage. For the first time in the National Housing Survey’s three-and-a-half-year history, the share of respondents who said it is easy to get a mortgage surpassed the 50-percent mark, exceeding those who said it would be difficult by 7 percentage points. The gradual upward trend in this indicator during the last few months bodes well for the housing recovery and may be contributing to this month’s increase in consumers’ intention to buy rather than rent their next home. The dip in overall home price expectations, though notable, is consistent with our view of moderating home price gains this year from a robust pace last year, while positive trends in perceptions about the economy and personal finances over the next year support our view of stronger growth in the broader economy.”
-70% of the respondents said they would buy a home if they were going to move. This is an all-time survey high. Those who said they would rent is at an all-time low of 26%.
The attitude towards the overall economy increased 8 percentage points to 39% in January, despite jobs data being low the last couple of months. 44% of those surveyed believe their financial situation will improve in the next year, continuing the upward trend since November 2013.
Thinking of buying or selling a home in the La Jolla area? As consistent Top Producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Working with The Daniels Group will give you with the advantage of having local experts to ensure that you have a successful real estate transaction. From buying, selling and investing to financing options and more, we have the expertise and resources to help you achieve your goals. Call us today at (858) 361-5561 or email us anytime by clicking here.