Consumers Expecting Home Prices to Increase

Consumers Expecting Home Prices to Increase
The latest Survey of Consumer Expectations has been released by the Federal Reserve Bank of New York. The survey for June 2014 found that consumers are expecting home prices to increase across the United States excluding the Southern Region.
Consumers surveyed reported an expected increase of 4.0 percent. This was up slightly from April, where prices were expected to increase 3.77 percent. The region with the highest month over month expectations was the West, which went from 5.02 percent in April to 5.53 percent in May. The Midwest saw a small increase, with expectations growing from 3.05 to 3.13 percent. In the Northeast, expectations grew from 3.02 to 3.1 percent. In contrast, price expectations in the South declined from 4.0 percent in April to 3.93 percent in May.
When questioned about the probability of finding a job if they were to lose their jobs today, respondents responded with a mean of 48.7. This was slightly higher than the mean probability of 46.57 percent.
The survey also reported on debt delinquency. The probability of respondents who said they would not be able to make minimum debt payments over the next three months was 14 percent. This was down from April. The same respondents also felt that the inflation rate next year would be 3.17 percent. This is down from the response of 3.3 percent in April. Also, 31.67 percent of survey respondents believed credit availability would be “somewhat harder” in the next year. 8.39 percent believed that gaining credit would be “much harder”. About 41 percent said credit availability would be “equally easy/hard” in the coming year. This left 19 percent believing credit will be “somewhat easier” to “much easier” in the coming year.