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Is it still a good time to buy?

by I Am Benchmark

Better late now than never later.

It’s the question that’s buzzing around real estate offices, mortgage companies, backyard barbecues, water coolers and passing conversations with neighbors.

The short answer is — we think so.

Yes, it is still a good time to buy.

The long answer is more complicated. Consider these four trends to help you as you make your housing buying decisions.

Higher home prices show no signs of reversing course.

Even before the pandemic, the supply of the housing market couldn’t meet the demand. In 2020, COVID-19 affected the housing market just like it did every other industry. However, we’d soon find out that the real estate market was a double-sided coin.

Let’s set the record straight. If you’re expecting the trajectory to result in a housing bubble ready to burst, reminiscent of 2008’s Great Recession, this isn’t that. The market variables that resulted in the 2007-2008 housing market crash don’t exist now. If higher home prices cause are causing you to hesitate, keep in mind that prices will likely continue to rise. Home prices were rising already before the virus, and multiple variables from the pandemic created greater demand in an already competitive market.

With the introduction of social distancing measures, many began to conduct the majority of their lives inside their homes and, unsurprisingly, wanted or needed more space. Many also sought financial security, preferring a traditional equity purchase that still carried relative liquidity amid the health crisis uncertainty. What better way to adapt to the new world than investing in your home: the very place you planned to ride out the epidemic? Many see it as a timely investment vehicle.

Buying gained popularity.

However, many other Americans had the same idea. Additionally, the COVID-19 pandemic affected the ability and access for individuals to go to work. Companies in the housing industry suffered, as workers were absent due to new mandates among other pandemic-related challenges. As the pandemic wore on, labor and building materials supply chains struggled further.

Earlier, I wrote that, before the pandemic, as well as in its beginning, housing demand had exceeded supply. The difference now is that the supply of home options is extremely low1 due to the factors mentioned above, which have resulted in climbing home prices. In fact, Zillow projects a 17% year-over-year rise in home valuations for 20222.

The effects of the pandemic only added more fuel to a white-hot market. Home prices aren’t going down any time soon, even if their rise slows.

1 https://www.nytimes.com/2022/01/20/upshot/home-prices-surging.html
2 https://www.zillow.com/research/home-values-sales-forecast-jan-2022-30667/

Interest rates have started correcting to higher levels.3

At the beginning of the pandemic, in the face of a developing national health crisis, the Federal Reserve took action. They pledged (and proceeded) to buy debt and mortgage-backed securities (MBSs) in an effort to help the economy.4 This resulted in an artificially high demand for MBSs, driving down mortgage interest rates. For a time, this helped add stability to the economy. It made it easier access financial resources, investments, and loans — such as mortgages. It’s not surprising that so many individuals decided to pursue homeownership during the pandemic. Demand was already outpacing supply. The lower interest rates made a home purchase that much more attractive, tipping the balance further.

As inflation has risen, so too has the labor market. The Federal Reserve has noticed, and has claimed that they will begin selling some of their balance sheet. This move serves to correct mortgage interest rates back up to normal market levels.5

A more balanced market is good for the economy, in general. However, higher interest rates will only decrease buying power for home buyers. Additionally, home buyers who have waited for prices to fall just may see prices at least hold, if not increase.

See also: Buy Now To Buy More: What Interest Rates Mean For You

The later you buy in 2022 and beyond, the greater your chance for a higher mortgage interest rate.

3 https://www.forbes.com/sites/billconerly/2022/01/27/what-rising-interest-rates-mean-for-business/?sh=14586c3e23a1
4 https://www.brookings.edu/research/fed-response-to-covid19/
5 https://www.federalreserve.gov/newsevents/pressreleases/monetary20211215a.htm

Rent price increases are breaking records6 and making headlines.

It is well-known that rent prices rise over time. This is due to a variety of factors: inflation, rising utility costs, location value, and the list goes on. With reduced supply of homes and renter instability during the height of the pandemic, rent prices are up 14% year-over-year, with some up over 30% in many major metro areas.7

Renting is a great option for those who want to stay flexible. But for those looking to optimize their finances, it’s helpful to remember that 0% of your rent payment builds your own equity. Since it’s not part of a home investment, you’ll never see any of that money again!

Although a down payment may sting at first, a fixed rate mortgage payment does not increase over time. Compare that to rent, as it continues its daunting upward climb. Renting gives no net worth gain, and leaves you at the mercy of your landlord and binding lease agreement.

In some cases, after the down payment, a mortgage payment may be lower than rent for a comparable space. Be mindful where your money is actually going. You may be able to gain some equity for your housing costs.

See also: Is Buying A Home Really More Expensive Than Renting?

6 https://www.forbes.com/advisor/mortgages/rent-prices-all-time-high/
7 https://www.redfin.com/news/redfin-rental-report-december-2021/

The cost of waiting may be higher than you expect.

For many home buyers, the down payment is the hardest obstacle to overcome. With the home price index rising8, it will become increasingly difficult to save enough for a down payment. Down payments are measured as a percentage of home pricing, and are often tens of thousands of dollars. It can be quite a challenge!

Upward trends in demand, interest rates, rent prices, and the Consumer Price Index (CPI) means saving could become more difficult. If accounting for normal expenses and goals wasn’t enough, you will also be contending with market forces beyond your control. Should these trends continue, It will be harder to save for a ~12%9 down payment.

See also: Owning A Home May Already Be Within Reach

Depending on your situation, you may need less for a down payment than you think. Building your equity sooner means you could actually benefit from rising home prices. Even in a sellers’ market, getting into a home you can afford now may benefit you in the long run. However, we’d still advise that you exercise due diligence as you determine the best real estate investment for your situation.

8 https://www.spglobal.com/spdji/en/indices/equity/dow-jones-us-real-estate-index/#overview
9 2021 median down payment: https://www.nar.realtor/sites/default/files/documents/2021-home-buyers-and-sellers-generational-trends-03-16-2021.pdf

In the current housing climate, the cost of waiting to make a move in the real estate market will most likely cost you more in the long run.

Buying a home is a long-term decision that should be made with careful consideration. Financial decisions should be strategic. At Benchmark, we provide education to hopeful buyers regarding trends in the market and how they could affect future plans. We are committed to listening to your vision, and getting you the right mortgage for your future success. 

Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service for your new loan.

 

Benchmark brings you home.

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Cost of Building Materials, Homebuilders, and the Housing Market – July 2021

by Georgina Saunders

The housing market has been as hot as the day is long. Are we finally beginning to see a cooldown?

Although the housing market is still expected to favor sellers, we may be at a tipping point. Prices have risen so dramatically that buyers appear to be backing off, and home sales seem to have slowed.

Market Temperature Is Relative

Even with slowing sales, we still see bidding wars and cash offers over asking price. These will likely continue, especially for valuable properties in desirable locations. What we are seeing now is probably a softening of the housing market. Days on the market for properties is increasing, the amount of price cuts are going up, and properties are sitting for a bit longer, especially if they are not the crème de la crème. All this is thanks to a decrease in demand.

Lack of Affordability Is the Coolant

After experiencing a housing surge through the pandemic, the number of mortgage purchase applications appears to be close to pre-pandemic levels. According to a new Redfin study released earlier this week, home sales fell 1.2% from May to June, the largest drop at this time of year on record since at least 2012. In June,­­­­­ we entered a new phase of the housing market; home sales cooled because prices have increased beyond what many buyers can afford.

Builders Still Deal With High Material Costs

In the meantime, builders struggle with supply shortages, elevated costs for building materials — particularly lumber —  which has skyrocketed to more than 500% above its January 2020 level. While lumber prices have decreased slightly, those relative “savings” have not yet been realized by remodelers, builders, or consumers yet.

Bullish Builders?

Why are Builders & Developers being so bullish while unemployment ticks up? Because they recognize an opportunity when they see one. Here are two key factors:

  1. Home price growth in the last 12 months: 15-20% year-over-year growth, according to K. Schiller, gives builders an opportunity to profit by selling new homes while demand is hot, and
  2. Interest Rates are relatively low: It is easier and more affordable to get financing for newly build homes.

Housing is not a “Recession-Proof” Market

Is the housing market immune from the effects of other sectors of the economy? Not exactly. In an effort to support the economy in the face of the COVID-19 pandemic, the government chose to intervene, by means of the following:

  • Foreclosure and Evictions moratorium: preventing those economically impacted by the pandemic from losing their homes. (expiration at end of July)
  • Extended Unemployment assistance: to give financial support for those whose jobs may have been lost due to the pandemic.
  • Stimulus Checks: to lend financial support for the general economy at large.
  • Lower interest rates: the US Treasury has been buying mortgage-backed securities, creating artificial demand to drive down interest rates.

These factors have made it hard to see the effects of the US having lost 6 million jobs from the nation’s pre-covid levels.

However, not all areas in of the US economy have grown much over the last year. In fact, during the job losses, the accumulated debt, and the decline in legal immigration due to COVID, fundamentally, the demand for homes and apartments is not increasing that much. However, the permitting of New House & apartments and the construction of these is increasing a lot to help give relief to the housing shortage that we have been experiencing for several years. The increased inventory may also help bring balance to an overheated market.

Need a hand navigating the housing market?

If you are interested in buying a new or next home, refinancing your current home, or looking to fund a renovation, Benchmark is ready to be in your corner.

Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service.

Benchmark brings you home.

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Sources:

https://www.nahb.org/news-and-economics/industry-news?q&sortBy=relevance&sortOrder=asc&page=1
https://www.ghba.org/news/
https://www.nar.realtor/
https://reventureconsulting.com/insights/
https://www.housingwire.com/category/mortgage/
https://www.housingwire.com/category/real-estate/housing-market/

Flying sidekick performed by black belt martial artist in martial arts studio

How To Buy A House In 2019 – 5 Tips

by Jason Haeger

Flying sidekick performed by black belt martial artist in martial arts studio

If you want to buy a home this year, here are five tips on how to buy a house in 2019. At Benchmark, we make the effort to make it easy to claim your piece of the American Dream.

Watch this video, then read last week’s article linked below.

This New Year, Reach Your Dream of Homeownership

1) Know Your Target Home Value and Down Payment

To be able to know if you can realistically afford to be a homeowner, you should first explore your local housing market to find out how much you should expect your new home to cost.

You can use the “How Much House Can I Afford?” tool to get a realistic estimate. We also have a variety of Calculators right here at Benchmark.us to help calculate a number of factors, comparisons, and scenarios.

To get an idea whether the house you have your eye on is priced fairly, you should also ask your real estate agent for a Comparative Market Analysis. (see also: Find A Great Real Estate Agent The Easy Way)

When you have an idea of the cost of your future house, you can roughly calculate how much you will need for your down payment. Think you need 20% down?

Think again. See last week’s post, “This New Year, Reach Your Dream of Homeownership” if you haven’t already.

2) Know Your Cash Flow

Saving can be challenging, especially if you are not used to tracking your expenses. To improve your chances of saving success, you should know where every dollar that you earn is going every month. Check with your bank or credit union, as many banks and credit unions include tools for this. You can also use third party tools like Mint, YNAB, everydollar or even a simple spreadsheet. The more organized your plan towards achieving the goal, the more successfully you will be able to save.

If you read our previous post This New Year, Reach Your Dream of Homeownership, you will recognize the link between consistent savings and your down payment. A budget can help you do that.

If it will take you several months or years to save for your down payment, you could even consider opening a high yield savings account to get your savings earning as well.

3) Know How Much House You Need

For many, the first home you buy is not the first home you want. If the home you want is beyond your financial reach, it could still make sense to settle on a less expensive buy, if your budget and standards allow.

It could cost you far more money in the long run to wait until you can afford the house you want, when a house you could be happy with is within reach now. You can always “trade up” when the time is right. You will have to make this decision for yourself, but it is something to think about.

In an earlier article entitled Millionaire Tells Millennials To Buy A Home, we mention that David Bach, author of “The Automatic Millionaire” is quoted as saying,

“The fact is, you aren’t really in the game of building wealth until you own some real estate.”

Mr. Bach also said,

“Oftentimes, buying your first home means you’re not buying your dream home. You’re just getting into the market.”

If that isn’t enough, you can read “Homeowner Average Net Worth 3,600% Higher Than Renter” for more reasons to consider getting started sooner rather than later.

4) Know The Steps For Buying A Home

The Way Home graphic

I have a convenient interactive tool right here on my website to help walk you through the steps to take when buying a home.

Discover Your Way Home

We built a tool for our Loan Officer websites that asks a series of questions to give you an personalized step-by-step plan for buying your next home. Need a plan for refinancing? It does that too.

To use this tool for yourself, you will need to find a loan officer in your area Find Your Loan Officer, then click on “The Way Home” in the navigation menu.

To use this tool, you will need to find your Loan Officer and go to their website by clicking the link that looks like this:
Visit My Website branch website link screenshot

Once on your loan officer’s website, look for the “The Way Home” navigation link (below), and click.
The Way Home visual navigation screenshot.

5) Keep Your Cool

Do you feel overwhelmed by what appears to be a monumental achievement? We understand. Do you wish it could seem easy? This is what we do every day.

At Benchmark, we have such a great team, that we have been able to make mortgages happen for borrowers who had already been turned down by another lender.

Not sure where to start? No problem. We are honored to help guide to towards your dream of owning your own home with a mortgage that aligns with your personal financial outlook.

Even if you are concerned with debt, your credit history, or even your down payment, let’s chat! If you want to make your dreams a reality, we are here to help make that possible.

Find your branch, and contact them today. If you are ready, you can click to Apply Now. We look forward to helping you reach your goals!Call or email us, or Contact Us today. If you are ready, you can Apply Now. We look forward to helping you reach your goals!Call me, Email Me, or Contact Me today. If you are ready, you can Apply Now. I look forward to helping you reach your goals!

Conforming Loan Limits Set To Increase For 2018

by I Am Benchmark

photograph of unfinished roof frame
Last year, the conforming loan limit was set to increased to $424,100 for this year (2017). Now, most of the United States will see an increase for single unit properties to $453,100 for 2018.

The HERA (Housing and Economic Recovery Act) indicates that the baseline conforming loan limit should be adjusted with the change in the average home price in the United States every year.

According to the FHFA (Federal Housing Finance Agency):

According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017.  Therefore, the baseline maximum conforming loan limit in 2018 will increase by the same percentage.

A loan is considered “conforming” when it conforms to Government-Sponsored Enterprise (Fannie Mae and Freddie Mac) guidelines.

In light of the recent announcement of the S&P CoreLogic Case-Shiller Home Price NSA Index increase from last year, and FHFA’s seasonally adjusted, expanded-data HPI increase, this conforming loan limit adjustment is a welcome change for home buyers in high valuation markets.

To learn more about this increase, you can read the press release from the FHFA by going to https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Maximum-Conforming-Loan-Limits-for-2018.aspx.

How to Score in Today’s Housing Market

by I Am Benchmark

Housing inventory dropped 8.5% over the last year as of 2Q 2017, the 9th quarter in a row of this decrease in the number of available homes. Buyers are buying homes the fastest time on record since tracking began in 2012. When supply is down by 20% compared to five years ago, it is normal to expect demand to respond in normal economic fashion. Today, only 47% of homes stay on the market longer than 2 months.

Of course, the decrease in supply has lead to the expected economic consequence of raising prices. Homes are becoming less affordable, especially for first time homebuyers. While there is not much you can do to influence the economics of the market, below are three steps you can take to be able to play the game successfully.

Get Proactive

Before you begin to search, talk to your mortgage consultant and a Realtor. In a highly competitive market, it’s important to be prepared. Homebuyers who begin their home hunt with a pre-approval in hand are able to act fast, resulting in an accelerated time table. The most prepared buyer’s readiness is often more attractive to sellers, putting the proactive buyers at an advantage.

Have a Plan

Whether you’re a first time homebuyer or a homeowner looking to sell your house, creating a timeline model is a great way to plan your success. With clear expectations and a calendar, your lender and Realtor can help make your journey as smooth as possible.

Rely On Your Teammates

Your Realtor and your mortgage lender are on your team, and ready to help you find the best home and financing plan that takes your needs and desires into account. While buying a home can seem like a daunting task, we know that it doesn’t have to be. It’s all part of what we call The Benchmark Way.

* Data and information sourced from Trulia https://www.trulia.com/blog/trends/inventory-q2-2017/ accessed on July 21, 2017

Is More Housing Inventory On the Way?

Is More Housing Inventory On The Horizon?

by I Am Benchmark

Is More Housing Inventory On the Way?
There has been a lot of talk about the rising value of houses in recent years. While some have expressed concern over another 2008 style housing bubble forming, we have dispelled this notion. While economics is a bit more complicated, most moves are the direct result of what you may have learned in school: supply and demand.

The Buyers are Vying

While no-one doubts that the current economy is sluggish (with varying opinions as to why), the demand for single family homes has continually increased. To corroborate that this is not just a timely fad, surveys show that 80%+  still considers home ownership an essential part of the American Dream. (something that we have talked about before). A recent Gallup survey indicates that real estate is considered to be the best long-term investment.

The Owners are Holding

For several years, homeowners may not have been able to sell. Reasons were numerous, including issues such as family finances and lack of home equity. (which isn’t surprising, in the wake of a housing bubble collapse) As a result of this “holding”, the supply of homes is low, as is to be expected. With the steady increase in home values, however, there is reason to believe that incrased motivation to sell will possibly increase the supply. Do families want to sell?

Short of asking, we can look at how long homes have been held, on average, over time.

Forbes


As the economy continues to improve, even if slowly, and more families approach possession of significant equity (20% or more), we expect to see more homes on the market. As the supply increase reduces the gap with existing demand, home price increases may begin to slow.

The Takeaway

If you are one of those who have been holding onto your current home over the last few years, now may be a good time to cash in (sell), and find the home of your dreams.

do's and don'ts for the mortgage process around christmas graphic

Do’s & Dont’s for the Mortgage Process around CHRISTMAS

by bmadmin

The holiday season is always a crazy time, but that’s no reason not to take advantage of the great housing market, and make some new holiday memories in a new home. Benchmark is committed to a smooth and easy mortgage process, keep these simple do’s and don’ts handy as you start your home buying process this holiday season.

DO’s:

· Keep an eye on your holiday budget; remember not to make big purchases that might affect your credit score.
· Be sure and take into consideration your own personal schedule as the holidays tend to get hectic quickly.
· Use your neighborhoods Christmas decorations to gauge the atmosphere of the community.
· Call your Benchmark mortgage professional l to start your home search today! Nothing is better than a Christmas spent in a new home!
· Remember it is the holiday season for your loan officer and realtor. While they will gladly assist with any questions you might have, be mindful of their time.
· Let Santa and the Elves know that you have moved addresses!

DON’TS:

· Don’t make any large purchases (things that require credit checks or opening new lines of credit). This can affect your credit score and change your loan status.
· Don’t wait until the last minute to complete and send the required documents to your loan officer. Doing it in a timely manner will ensure a smooth loan process.
· Don’t rush putting an offer on a house just because you can close before the holiday season. Remember, this is a long-term decision.
· Don’t use your entire down payment on holiday gifts. Save the money you can.
· Don’t accept monetary gifts from relatives without consulting your loan officer first. (Monetary would be like down payment assistance)

Housing Market Turns Corner; U.S. Home Values Post First Annual Increase In Nearly Five Years

by bmadmin

Zillow’s second quarter Real Estate Market Reports, released today, show home values increased 2.1% from the first to the second quarter of 2012 to $149,300 (Figure 1). On an annual basis, home values rose 0.2% from June 2011 levels (Figure 2), marking the first annual increase in U.S. home values since 2007. In addition to showing both quarterly and annual appreciation, national home values also rose for the fourth consecutive month, increasing 0.7%. Notably, home value appreciation in the second quarter was the highest since the fourth quarter of 2005.

Nationally, home values reached their bottom in February of 2012 and have since appreciated at very robust monthly growth rates. Despite encouraging monthly growth, we do not believe that this monthly rate is sustainable and expect it to taper off towards the end of the year. According to the Zillow Home Value Forecast, we expect national home values to appreciate by 1.1% over the next year (June 2012 to June 2013).

The housing market’s recovery continues to show tremendous variation market by market. Sixty-nine of the 157 markets covered by the Zillow Home Value Forecast are expected to see increases in home values over the next year, with the largest increases expected in the Phoenix metro (9.9%) and the Miami metro (6.1%). We believe that ninety-six out of the 157 markets have already hit a bottom in home values, including Boston, Miami, and Phoenix. In some of the hardest hit markets, the bottoming process has been quite different than we had initially expected. Due to very low inventory levels paired with greater consumer and investor appetite and low mortgage rates, home values have appreciated faster than anticipated in markets like Phoenixand Miami, creating a V-shaped recovery in home values.

Home Values

The Zillow Real Estate Market Reports cover 167 metropolitan areas (metros) of which 98 showed quarterly home value appreciation. Five metros remained flat, while 64 metros show home value losses. Nearly one-third of metros covered by the Real Estate Market Reports posted annual increases in home values. The largest annual increase was in Phoenix, where home values rose 12.1% from the second quarter of 2011 to the second quarter of 2012. Phoenix is benefiting from high demand for homes from investors looking to convert them into rentals, high demand from mainstream buyers pulled back into the market by historical affordability (almost 43% below the historical average) and constrained supply due to high negative equity (55.5% of Phoenix homeowners with a mortgage were in negative equity in 2012 Q1) and natural resistance of sellers to sell at market bottom.

Overall, national home values are back to January 2004 levels, having fallen 22.9% since their peak in May of 2007.

Rents

The June Zillow Rent Index (ZRI) is up 5.2% from year-ago levels, and 68% of the 293 metropolitan areas covered by ZRI in this report experienced year-over-year gains. The rental market remains strong even as home values start to once again appreciate in many markets. Markets that saw extremely strong year-over-year rent increases include Philadelphia (11.9%), Chicago (11%),Baltimore (11%), and San Francisco (9.5%). Continually rising rents will increase consumer demand for home purchases, especially in this low mortgage rate environment.

 

Foreclosures

The rate of homes foreclosed continues to decline in June with 5.8 out of every 10,000 homes in the country being liquidated (Figure 4). This is the lowest foreclosure pace we’ve seen since December 2007 when 5.5 out of every 10,000 homes were being liquidated. Nationally, foreclosure re-sales also continued to slow, making up 15.6% of all sales in June, down from 16.4% in May (Figure X). The decreasing prevalence of foreclosures in the monthly transactional mix is due to both seasonality (more non-foreclosure sales in the spring and summer) combined with the much slower pace of foreclosure liquidations over the past year. This lower level of foreclosure re-sales is contributing to home value appreciation, as these are usually sold at a discount and influence surrounding non-distressed sales. With foreclosure starts again increasing now that the National Foreclosure Settlement has been approved by the courts, we do expect some increase in foreclosure liquidations in the back half of this year, although lenders are being more aggressive in pursuing foreclosures alternatives for homes in the pipeline.

Outlook

Nationally, we believe that housing has finally turned a corner, and our forecast calls for U.S. home values to increase by 1.1% over the next year. In general, we continue to believe that high levels of negative equity paired with higher than normal unemployment will keep foreclosure rates higher than normal for at least the next 2-3 years. In some markets, we believe this combination will temper near-term price appreciation and lead to a U-shaped recovery in home values.

In other markets, however, we believe the trajectory of home values will look more like a step-function characterized by cycles of price spikes and plateaus. In these markets, negative equity-induced supply constraints in combination with mainstream buyer demand and robust investor demand will lead to short-term price spikes (as we’re seeing now in Phoenix and Miami). These price spikes will free some homeowners from negative equity, allowing them to sell, thereby easing supply constraints and dampening prices until the cycle is repeated.

Downside risks to our outlook are that the pace of foreclosures increases more than expected, job growth becomes even more sluggish, or we have a political train wreck on the budgetary and tax issues we face at the end of this year. We, however, remain optimistic that low mortgage rates, high levels of affordability, rising rental prices, and slowly improving conditions in the overall economy will combine to keep the housing recovery on track, and we expect that both existing and new homes sales will continue to increase for the remainder of the year, being tempered only by low inventory levels (versus anemic demand).

See interactive data on Zillow’s Research page here.

Survey Shows Home Prices and Rent Rates Expected to Increase

by bmadmin

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.”

This article is courtesy of our friends at Keeping Current Matters.