Higher Auburn Area Home Prices Expected by Consumers
Higher Auburn Area home prices are expected by 33 percent of consumers over the next year. Fannie Mae’s March housing survey indicated 5 percent more people expect Auburn Area home prices to increase this month over the 27 percent surveyed last month who thought prices would increase this year.
Nearly half of consumers expect higher rental prices as well, the highest number registered by Fannie Mae since its monthly tracking began in June 2010. Americans’ rental price expectations for the next year continue to rise, reaching their record high level for the Fannie Mae survey this month.
The percentage of respondents who say it is a good time to buy rose by three points to 73 percent, the highest level in more than a year, while the percentage of respondents who say it is a good time to sell rose one point to 14 percent this month.
Consumers’ confidence about their own finances is stabilizing, with 44 percent expecting an improvement over the next year.
Higher Mortgage Rates Expected
There is an increasing share of consumers expecting both higher mortgage rates and Auburn Area home prices over the next 12 months.
Doug Duncan, vice president and chief economist of Fannie Mae says, “Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month.”
Duncan says, “Some may feel that renting is becoming more costly and that home ownership is a more compelling housing choice. Conditions are coming together to encourage people to want to buy homes.”
While the “sales of existing homes in January and February marked the strongest start to a year since 2007,” according to the combined Housing and Urban Development (HUD)/Treasury statement. “Data on home prices changed little from the previous month – marking a fifth month of seasonal lows.”
For further Fannie Mae survey findings, visit the Fannie Mae Monthly National Housing site. http://fanniemae.com/portal/research-and-analysis/housing-monthly.html