Housing recovery won't stumble due to waning consumer sentiment
Posted on Tuesday, March 11, 2014 at 10:06:37 AM
At the moment, it appears a large number of homeowners and potential buyers are concerned about the state of the housing market and residential financing rates. However, despite the waning consumer sentiment, industry experts believe that the overall recovery will continue on.
According to Fannie Mae's February 2014 National Housing Survey, 57 percent of respondents believe that the economy is on the wrong track, an increase of 3 percent month-over-month. In addition, the survey found that 50 percent noted home prices were expected to increase over this coming year, also a reversal of the previous month's trends.
"Similar to the noisy economic and housing data published over the past few months, we've seen a corresponding increase in volatility in our survey results, particularly for home price expectations and perceptions about the ease of getting a mortgage," said Doug Duncan, senior vice president and chief economist at Fannie Mae.
This sentiment was echoed by economists Robert Shiller and Karl Case, according to the Washington Post. They performed their own survey of 500 buyers across four major cities, and found expectations have trended downward since 2005. Buyers also expected an increase in home prices.
Despite these results, the housing market recovery remains positive. Residential financing rates are near historic lows, and improving conditions are predicted to continue for some time.