Last year’s housing market had its challenges. There was plenty of interest from home buyers, but too few homes for sale and high prices dampened some of the enthusiasm. This year, Americans may be feeling more optimistic, according to the most recent Home Purchase Sentiment Index from Fannie Mae.
In addition to an 8 percent increase in the number of respondents who say their income is substantially higher than it was last year, there are also a declining number who feel home prices will keep rising. Essentially, consumers feel more confident in their money and see affordability conditions starting to improve.
Doug Duncan, Fannie Mae’s senior vice president and chief economist, says the boosted optimism and more favorable conditions may help home sales this year. Overall, these results are in line with our forecast that, amid improving affordability conditions, home sales should stabilize in 2019 after declining last year for the first time in four years.