Thirty-three percent of Americans
say they expect home prices to rise in the next 12 months, the highest
level in more than a year, according to Fannie Mae’s March 2012 National Housing Survey of consumer attitudes about the housing market.
The number of people who say now is a good time to buy is also on the
rise, increasing to 73 percent—also the highest level in more than a
year. The percentage who said it's a good time to sell a home also
increased one point to 14 percent in March.
Meanwhile, more Americans expect rental prices to rise and are
projecting an increase by 4.1 percent over the next year, the highest
number recorded to date.
“Conditions are coming together to encourage people to want to buy
homes,” says Doug Duncan, Fannie Mae’s chief economist. “Americans’
rental price expectations for the next year continue to rise, reaching
their record high level for our survey this month. With an increasing
share of consumers expecting higher mortgage rates and home prices over
the next 12 months, some may feel that renting is becoming more costly
and that home ownership is more compelling house choice.”
Source: “Americans’ Expectations Align to Encourage Home Buying,” RISMedia (May 6, 2012)