Fannie Mae Home Purchase Sentiment Index® (HPSI) did a study regarding housing confidence this past August. Their survey of both home buyers and sellers discovered a clear contrast between the two. The share of homebuyers surveyed for the Index who believe “now is a good time to buy” fell 5% points to 18%. On the other hand, the share of sellers surveyed who believe “now is a good time to sell” rose 8% points to 36%.
“The discrepancy is predominantly due to home prices,” says Doug Duncan, chief economist and senior vice president at Fannie Mae. Home sellers’ overall optimism landed at 88%, 1.2% points higher than the month prior, and moving toward the Index’s record high. Out of all home buyers and sellers surveyed, 48% anticipate home prices will rise. “In the early stages of the economic expansion, home-selling sentiment trailed home-buying sentiment by a significant margin,” Duncan explains. “The reverse is true today. The net good time to sell share is now double the net good time to buy share, with record high percentages of consumers citing home prices as the primary reason for both perceptions.”