Numbers Count: Optimism climbs for potential sellers
Numbers count. They matter to bankers and to prospective homebuyers, sellers, and real estate professionals. Here’s my take on the key numbers on the housing market this week.The numbers: Expectation metrics may favor buyers
Fifty-two percent of consumers believe now is a good time to sell a home, according to results from Fannie Mae’s June 2015 National Housing Survey released July 7. This is the first time in the survey’s five-year history that a majority of consumers have felt the time was right to sell a home. Meanwhile, 59% said they expect rental prices to go up in the next 12 months, also an all-time survey high. With an increase in housing supply from those ready to sell, combined with higher rental cost expectations, more potential homebuyers may be encouraged to leave the sidelines.What counts: Rising optimism about the market for selling a house may encourage more owners to actually put their homes on the market. Meanwhile, expectations of higher rental costs may encourage more potential buyers to enter the market. The latest average home-price data shows that homes are appreciating more slowly — 4.2% year-over-year in April compared to 4.3% in March. It is likely more homeowners who are inclined to sell may actually put their homes on the market now if they don’t foresee huge gains on the horizon from holding onto their homes longer.
If in fact more homes come on the market and price appreciation remains moderate, potential homebuyers may have the luxury in some markets of actually shopping. If that’s the case, consider taking along this handy home-shopping checklist from HUD to help when comparing various properties.