ENTITLE DIRECT > Title Insurance Knowledge > Poll: Conditions are ripe for homebuying, Americans say
Poll: Conditions are ripe for homebuying, Americans say04/13/2012
A new study suggests a considerable number of Americans believe housing conditions are aligning in such a way that makes homebuying a worthwhile investment.
According to Fannie Mae's March 2012 National Housing Survey, which assesses consumer attitudes, more Americans anticipate rental prices to increase over the next year. Close to 50 percent of respondents said they expect rents to rise in the coming months, the highest percentage recorded since the study first took place two years ago. Thirty-three percent said home prices would increase, a 5 percent increase when compared with a similar poll that was conducted in February.
Despite Americans' belief that property prices will rise, most indicate that they would be able to afford it should they decide to buy. For instance, 44 percent noted they believed their personal finances would improve as the year progresses, the third straight month in which consumers have been more confident than the previous month about their personal economic situation. Just 12 percent thought their financial health would deteriorate over the next 12 months, the lowest level recorded since January of last year.
The survey also found that nearly three-fourths of Americans - 73 percent - said now would be an ideal time to purchase a home. In February, 70 percent had similar sentiments.
Doug Duncan, vice president and chief economist at Fannie Mae, said low closing costs and affordable interest rates are making the prospect of homebuying too good to pass up.
"Conditions are coming together to encourage people to want to buy homes," said Duncan. "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."
Other findings from the poll took into account what Americans would do - rent or buy - in the event they were about to move out of their current residence. Two-thirds of respondents said they would be more likely to purchase their next home, up slightly when compared to February's poll. Thirty percent said they would be more likely to rent, a modest increase from the 29 percent that indicated as such previously.