Consumers Optimistic About The Housing Market
Chicago, IL (PRWEB) April 07, 2014 -- As the economy and housing market continue their respective and intertwined recoveries, The Federal Savings Bank finds that more consumers have a positive feeling toward a real estate investing.
According to Fannie Mae's recent March National Housing Survey, 38 percent of 1,000 total respondents said that now is a good time to sell, up from 26 percent the year prior. As the housing crisis drove prices down and left many homes underwater, increased optimism in this area highlights how current price appreciation is revitalizing hopes of owning a home as a profitable investment.
In addition to current homeowners having a reason to feel positive about their home, future buyers may look forward to an easy time purchasing a property, as 52 percent of respondents said it would not be difficult to get a mortgage today. In March 2013, only 47 percent had the same sentiment, and the current percentage is tied for an all-time high for the survey. First-time home buyers, who are most often in need of financing to purchase a home, may be able to take this as a sign that now is the time to buy while their peers report easier access to a mortgage.
Consumers seeing financial benefits of the recovery
Of course, a home loan has to be accompanied by stable personal finances for a home purchase to remain an affordable investment; The Federal Savings Bank is always checking the personal finances of its mortgage applicants. According to the survey, consumers reported not having trouble in this area either, as only 12 percent of respondents expected their financial situation to worsen within the next 12 months. This was a significant decline from the previous year's 21 percent. Furthermore, 40 percent said their finances improved during the past year.
"Rising mortgage rates and a lack of supply have dampened housing market momentum," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "However, we see several positive signs going into this year's spring home buying season, compared with last year."
Some consumers still wary of economic challenges
While access to a low cost mortgage and improved personal finances may have some consumers praising the recovery, Duncan noted that others are still pessimistic about obstacles in the economy. The economist said that the recovery has not been smooth, as there have been short-term declines alongside year-over-year gains. While the sporadic progress may at times give weight to consumer concerns, Duncan asserted that there is more economic growth to come later in 2014, which may alter the perceptions of more Americans.
Through 2013 and into the first quarter of 2014, price appreciation and sales activity have slowed. However, the lower levels of activity may only appear slow compared to late 2012 and early 2013, when prices and sales took off at a fast pace as the housing recovery began. The Federal Savings Bank predicts that 2014's activity will continue to include growth, but it will likely be at a pace that is slower and more sustainable.
For more information on low rate mortgage products, contact the Federal Savings Bank, a veteran owned bank.
Giorgio Urbano Ferrero, The Federal Savings Bank, https://www.thefederalsavingsbank.com, +1 8473386062, [email protected]
Share this article