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Consumer Optimism about Housing Rises Amid Easing Employment Concerns
Friday, May 16, 2014 6:55 AM

According to Fannie Mae's April 2014 National Housing Survey, Americans’ outlook toward the housing market continues to improve. The share of respondents who believe now is a good time to sell a home increased for the third consecutive month to an all-time high of 42 percent in April. This is an encouraging sign, since many potential homebuyers will need to sell a home before entering the buyer's market.

The share of respondents who say now is a good time to buy remained steady at 69 percent, following a gradual climb since the beginning of the year. Although consumers remain split regarding their ability to get a mortgage, fewer respondents are concerned about losing their jobs, and that means more potential homebuyers will enter the market.

Will Head, senior loan officer for Members Credit Union in Cleburne, Texas, thinks a lot of factors go into housing optimism. "Sales prices were at an all-time low in 2008 for housing, and in 2010-11, interest rates were at an all-time low. Sales prices have come up since then, but they are not close to their peak, and interest rates are up a little but remain historically low. Those two factors together, people think they are getting a good sales price interest rate when they purchase a home." 

Will expands on the optimism felt locally. "In the Texas area, housing is booming because unemployment is so low and new employers, such as Toyota headquarters and Boeing, are opening up in the area," he said. "Additionally, a lot of people are moving in from out of state, and in the DFW/Cleburne area, we have a new highway that opened May 12, 2014, which is expected to bring a housing boom and double the population of Cleburne in 10 years."

Read more about Fannie Mae's National Housing Survey.