Despite Slow Job Growth Fannie Mae Finds Consumer Attitudes Still Positive
Home price expectations and share of Americans who think it is a good time to sell their home continue to increase
Despite slow job growth, American consumer attitudes about homeownership, the economy, and personal finances continue to move slowly in a positive direction, according to results from Fannie Mae’s April 2012 National Housing Survey.
The continued stabilization of consumer attitudes coupled with growth in areas such as home price expectations, whether it is a good time to sell one’s home, direction of the economy, and the percentage of Americans who saw an increase in their personal income indicate an alignment of factors that may influence Americans’ decision making about purchasing a home.
“This month’s survey shows a continued gradual improvement in consumer sentiment and outlook for home prices,” said Doug Duncan, vice president and chief economist of Fannie Mae. ”After flatlining at depressed levels for over a year, a growing share of consumers indicate that it is a good time to sell, suggesting rising optimism for the housing market. Overall, consumer views of housing market conditions have become more supportive of home purchases, and sustained healthy hiring is required to help realize these improved expectations. Friday’s report of a second consecutive setback in job creation supports the view that the housing recovery will remain uneven this year.”
Highlights of April Survey:
- Confidence in the economy’s direction rose to the highest point in the survey’s two-year history this month, hitting 37 percent, an increase of 2 percentage points from last month.
- Only 12 percent think that their personal financial situation will worsen in the next 12 months, consistent with February and March as the lowest value in more than a year.
- Twenty-three percent of respondents saw an increase in their personal income from 12 months ago, a 2 percentage point increase from March and the highest level recorded during the past year.
- Thirty-six percent say their expenses have increased significantly over the past 12 months, a 2 percentage point increase from last month and a return to the level recorded in January.
Fannie Mae’s monthly national consumer attitudinal survey report provides indicators offering a window into the opinions of Americans across the country. Read the entire report here.