Home sellers feel good in 2021
The sellers at the house are nibbling a bit. As the economy reopens, vaccinations continue to deploy and stimulus controls Home sellers are increasingly optimistic about reaching bank accounts across America.
And despite fierce bidding wars, competition from institutional investors and aching wrists from writing dozens of heartfelt letters to home sellers, even buyers are gaining more courage these days.
Fannie Mae’s Home buying sentiment index (HPSI), a composite index designed to track the real estate market and consumer confidence in buying or buying a home, rose 5.2 points in March to 81.7.
Four of the six components of the IHPS increased on a month-over-month basis, including components related to home buying and selling conditions, household income and home prices. houses. The outlook component of mortgage rates saw the only drop in the HICP for March, with the latest results showing that only 6% of consumers believe mortgage rates will go down in the next 12 months.
Fannie Mae, senior vice president and chief economist Doug Duncan said the HPSI increase in March reflects consumer optimism about the housing market and the economy in general.
Technology has given consumers the power to choose and has sped up the entire real estate buying process. The successful agents, brokerages and loan officers of the future will rely heavily on technology to find, service and interact with home buyers and sellers while playing an increasingly important role in as personal advisers.
Presented by: Propertybase
“There could be even more intensity this year, as the spring 2020 home buying season was limited by virus lockouts,” Duncan said. “Doorstep selling sentiment has seen positive momentum in most consumer segments, reaching almost pre-pandemic levels and generally indicating a strong doorstep selling market.”
Duncan added that home sellers cite high home prices and tight inventories as the main reasons it’s a good time to sell.
“On the other hand, while the ‘right time to buy’ net component increased month over month, it has not returned to its pre-pandemic level as the shopping experience of a house continues to prove difficult for many of the same reasons, ”he said.
(The percentage of respondents who say it’s a good time to buy a home has increased from 48% to 53%, while the percentage of respondents who say it’s a bad time to buy has increased from 43% to 40%.)
Mortgage applications fell 2.2%, according to the March 31 report from Mortgage Bankers Association. However, buying activity in the last week of March increased 6% year over year, with the unadjusted buying index being 39% higher than in the same week a year ago.
This is largely reflected in the HPSI. The percentage of respondents who think it is a good time to sell a home has increased from 55% to 61%, while the percentage of respondents who say it is a bad time to sell has increased from 35% to 28%.
The percentage of respondents who think house prices will go up in the next 12 months has increased from 47% to 50%, while the percentage who say house prices will go down has risen from 18% to 14%. The share that thinks house prices will stay the same remained unchanged at 29%.
Only a handful of people thought mortgage rates would drop next year, to 6%, from 8% the month before. Mortgage rates are officially outside the 2% range that homebuyers were enjoying in 2020, with the most recent report pointing to rates at 3.27% for a 30-year vanilla fixed mortgage.
Aside from the higher rates, consumers seem to feel better about the economy as the percentage of respondents who say their household income is significantly higher than 12 months ago has increased from 17%. to 25%, while the percentage of significantly lower decreased from 19% to 15%. The percentage who say their household income is about the same has increased from 61% to 56%.
Likewise, the percentage of respondents who are not worried about losing their job in the next 12 months remained unchanged at 82%, while the percentage who said they were worried also remained unchanged at 17%.