Nationwide, consumer attitudes toward home buying rise which holds true here in the Napa Valley
This is a continuation of my posts about renting vs buying. On April 2nd, I wrote an article, Considering whether it is better to own or rent a home here in the Napa Valley, comparing renting vs owning a 1,400 sf, 3 bedroom, 2 bath home here. This was a follow-up to the Fannie Mae’s latest quarterly National Housing Survey, Even with all the problems from this housing mess, Americans still prefer to own a home, showing Americans still prefer to own a home rather than rent. The third was my recent post, More on renting vs owning a home here in the Napa Valley and California, what makes the best sense financially. This continuing trend shows no signs of letting up as rents continue to rise.
More consumers may be looking to purchase homes with a shift in several key housing market indicators, according to Fannie Mae’s March 2012 consumer attitudinal National Housing Survey. More Americans now expect both home rental and home purchase prices to increase over the next year. Nearly half of consumers expect higher rental prices, the highest number recorded since monthly tracking began in June 2010. These trends may be providing Americans with an increased sense of urgency to buy a home as 73 percent of Americans now believe it is a good time to buy a home, up from 70 percent in February.
Highlights of the survey include:
- Thirty-three percent of respondents expect home prices to increase over the next 12 months, a five percentage point increase from last month, the highest level over the past 12 months.
- On average, Americans expect home prices to increase by 0.9 percent over the next 12 months (up slightly since last month).
- Thirty-nine percent of Americans say that mortgage rates will go up in the next 12 months, a five percentage point increase from last month.
- On average, respondents expect home rental prices to increase by 4.1 percent over the next 12 months, a significant increase since February, and the highest number recorded to date.
- Forty-eight percent of respondents think that home rental prices will go up, a three percentage point increase from last month and the highest number recorded to date.
- Sixty-six percent of respondents say they would buy their next home if they were going to move, up one point since last month, while 30 percent say they would rent, up one point versus last month