According to Fannie Mae’s Home Purchase Sentiment Index (HPSI), consumer confidence to sell or buy a home increased in March by 5.2 points to a level of 81.7. Fannie Mae’s Vice President and Chief Economist, Doug Duncan, stated that the increase in March, “Reflects consumer optimism towards the housing market and the economy in general.” As the economy begins to reopen, both home buyers and sellers seem overly eager to participate in the always active Spring housing market. Duncan went on to state, “There might be even more intensity this year, since 2020’s Spring home buying season was limited by virus-related lockdowns.”
Within the report, the percentage of respondents who believe home prices will go up in the next twelve months increased from 47% to 50%, while the percentage who believe home prices will go down decreased from 18% to 14%. The percentage who believe home prices will remain unchanged, stayed level at 29%. In addition, the percentage of respondents who believe it’s a good time to sell a home increased from 55% to 61%, while the percentage who say it’s a bad time to sell a home decreased from 35% to 28%. Overall, despite the slight uptick in interest rates, the continued increase in consumer confidence is a strong indicator that this year’s Spring housing market is expected to be more active than ever!