Consumer optimism in the housing market is growing—but it may be short-lived as tax reform looms.
In Fannie Mae’s latest Home Purchase Sentiment Index, the share of respondents who say now is a good time to buy a home increased 7 percentage points from October to November. The share of respondents who say now is a good time to sell a home rose 4 percentage points and is up 21 percentage points year over year. Americans also expressed a greater sense of job security, which tends to bode well for housing in the long-term. Overall, Fannie Mae’s housing index in November neared its all-time high, which was set in September.
“These results are consistent with our expectation that the housing market will continue its modest expansion going forward,” says Doug Duncan, Fannie Mae’s chief economist. However, Duncan cautions that “next month’s survey should offer the public a first look at the influence that potential tax reform may have on consumers’ views toward housing and the broader economy.”
Here is a snapshot of Fannie Mae’s 2017 Home Purchase Sentiment Index results from November, based on a survey of about 1,000 consumers on their home buying and selling attitudes.
- 29 percent: The net share of Americans who say it is a good time to buy a home, a 7 percentage point increase month over month. The uptick also erased last month’s 6 percentage point decrease.
- 34 percent: The net percentage of those who say it is a good time to sell a home rose by 4 percentage points.
- 46 percent: The net share of Americans who say that home prices will rise increased 6 percentage points in November.
- 74 percent: The net share of Americans who say they are not concerned about losing their job increased 4 percentage points.
- 14 percent: The net share of Americans who say their household income is significantly higher than it was 12 months ago, which remains unchanged from October.
Source: Fannie Mae