In May, more people than ever say it is a good time to sell your home, according to a survey Fannie Mae released Monday.
Fannie Mae’s Home Purchase Sentiment Index, an index which polls 1,000 Americans via live telephone interview to assess their attitudes towards various aspects about owning and renting a home, increased to an all-time high.
The survey increased by 1.6 points to a high of 85.3. This high is a turnaround from the recent numbers, which stood at an 18-month low.
However, in both this month and last month fewer consumers felt that it was a good time to buy, according to the survey results released by Fannie Mae.
Of the six HPSI components, six of them increased in May. The most increase was an increase of 7% to 18% in the share of consumers reporting that their income was significantly higher than it was 12 months ago.
The new share of consumers who expect home prices to go up over the next 12 months came in second with an increase of 5% to 42%. This was followed by 3% increase in the net share of consumers who expect mortgage interest rates to go down over the next 12 months.
The good time to sell net sentiment fell 2% to 13%, however if those who don’t think it is a good time to sell are not added in, the survey showed that those who do think it’s a good time to sell, 52%, is higher than ever.
On the other hand, the good time to buy component fell 1% to its all-time low of 29% for the second month in a row. Consumers not concerned about losing their job fell 2% to 72%.
“Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” said Doug Duncan, Fannie Mae senior vice president and chief economist.
“The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year,” Duncan said. “While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home buying season gains momentum, the effect may be muted by May’s discouraging jobs report.”