Accelerating Home Prices In March Reflect Record Level Confidence
“Much of the price increases we are seeing are the result of rising demand among investors and homebuyers for a still-limited supply of homes for sales,” said Anand Nallathambi, president and CEO of CoreLogic. Out of the top 100 metro areas by population, 88 posted annual gains.
Year-over-year home price gains have boosted American confidence in the housing recovery at record levels. Fannie Mae’s monthly National Housing Survey for April reports that 51% of respondents said they expect home prices to climb in the next year, up from 48% in March. Ten percent expect declines and 35 percent expect no changes.
This is the first time in the survey’s three-year history where more than half of respondents expected price gains. Doug Duncan, SVP and chief economist at Fannie Mae says, “Crossing the 50% threshold marks a significant milestone as most Americans believe a housing recovery is truly occurring throughout the country.”
Duncan goes on to say that the increased optimism of Americans who feel it is a good time to sell has doubled in the past year. The data shows that 5 out of 8 people must sell their home before buying a new one and Fannie Mae says the increasing optimism is a good sign for improvement in the future.
Forty-three percent of respondents expect their situation to improve, while 16% feel that their personal situation will get worse. Where do you see the market headed now that we are entering home-buying season?