Consumers maintain upbeat housing attitude
Consumer optimism in the housing market is growing—but it may be short-lived as tax reform looms.
In Fannie Mae’s latest Home Purchase Sentiment Index, the share of respondents who say now is a good time to buy a home increased 7 percentage points from October to November. The share of respondents who say now is a good time to sell a home rose 4 percentage points and is up 21 percentage points year over year. Americans also expressed a greater sense of job security, which tends to bode well for housing in the long-term. Overall, Fannie Mae’s housing index in November neared its all-time high, which was set in September.
“These results are consistent with our expectation that the housing market will continue its modest expansion going forward,” says Doug Duncan, Fannie Mae’s chief economist. However, Duncan cautions that “next month’s survey should offer the public a first look at the influence that potential tax reform may have on consumers’ views toward housing and the broader economy.”