Americans Predict Rents and Home Prices to Increase

We report on Fannie Mae’s Quarterly National Housing Survey every ninety days. Fannie Mae also does a monthly survey covering different aspects of the housing market.

Here are some record numbers we found interesting in Fannie Mae’s March report (emphasis added).

Thirty-three percent of respondents expect home prices to increase over the next 12 months, the highest level over the past 12 months.

The percentage of respondents who say it is a good time to buy rose to 73 percent, the highest level in over a year.

Forty-eight percent of respondents think that home rental prices will go up, the highest number recorded to date.

On average, respondents expect home rental prices to increase by 4.1 percent over the next 12 months, the highest number recorded to date.

Doug Duncan, chief economist of Fannie Mae, capped the report off by stating:

“Conditions are coming together to encourage people to want to buy homes. 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.”

via Americans Predict Rents and Home Prices to Increase.