Santa Monica Housing Market Update: Consumer Confidence Growing
While some prospective buyers of homes for sale on the Westside may have been hesitant throughout the years to make the major investment, a new report shows consumers are more confident in the housing market.
Fannie Mae’s National Housing Survey for September shows more Americans are optimistic about the recovery of the housing market, while they are also more confident in the overall economy.
Data from the survey shows consumer’s believe, on average, that home prices will increase 1.5 percent throughout the remainder of the year. While some buyers may not think of higher prices as good, the improving housing market factor benefits both buyers and sellers. Additionally, 37 percent of those questioned said they expect home prices to continue rising in the next 12 months.
Despite recent reports of new record-low mortgage rates, 33 percent of those surveyed say mortgage rates will increase in the next year. Fannie Mae notes this is down 7 percentage points from the last survey, likely from the unexpected drop.
Consumers are also reporting that now is an optimal time to sell, as 19 percent agreed, marking the highest level in survey history. The percentage of those who believe it’s a great time to buy dropped slightly to 72 percent, however, this is still relatively high.