An increasing number of Americans are starting to believe in home price appreciation again.
Perhaps it’s the excitement of an early spring market, perhaps the fact that unemployment has been steadily easing, or perhaps just the fact that we haven’t had an economic “crisis” in a good, solid six months.
Whatever the reason, 33 percent of respondents to Fannie Mae’s monthly housing survey in March said they expect home prices to rise, and rise an average 0.9 percent over the next 12 months. That’s the highest percentage of believers in over a year, and up a full five percentage points from February.
“Conditions are coming together to encourage people to want to buy homes,” said Doug Duncan, Fannie Mae’s chief economist in a news release. “Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”