Although many Americans have began to notice the improvement in the housing market, confidence in the general economy and personal finances continues to decrease. This is based on the results of June’s National Housing Survey from Fannie Mae and also outlines that current economic conditions have began to diminish their beliefs regarding the status of their personal finances. Record low interest rates and lower prices of homes in the U.S. has been the source of influence for those excited about the growth in the housing market.
How does the economy Impact the South Florida Real Estate Market?
An economist of Fannie Mae shared that although consumers are still weary of the status of our economy, the mental outlook on the housing market in the United States has began to thrive. If the condition of the economy declines, it may have an effect on the outlook of consumers in the real estate market. Regardless of the state of the economy as a whole, with the cost of rent risings, record low interest rates for home loans and low housing prices, now is an excellent opportunity for those interested to buy.
Respondents from the survey conducted by Fannie Mae expect home prices in the United States to increase by 2% within the next year. 35% of those surveyed believe that home prices will increase which is the highest percentage gathered since the beginning of the survey two years ago. The amount of those surveyed who indicated that they would purchase a home if they were forced to move has increased by 6% which is also the high percentage recorded since the survey was conceived in June of 2010.
36% of respondents believe that the economy is on the way to recovery and 57% of those surveyed indicated that they believe the economy is still declining. 42% of Americans believe that their financial conditions would not change and would remain the same. Last month’s results show that 46% of people indicated that their financial situations would change which is 4% decrease for this month. 18% of those surveyed indicated that their combined household income has shown signs of improvement.
Homeowners and Renters
? 35% of those surveyed indicated that they believe the costs of homes to increase with the next 12 months which is the highest amount recorded since the survey was put together in June 2010.
? 37% of respondents believe that mortgage rates will increase within the next which is 4% less than last month’s survey.
? 73% of those surveyed believed that now if an ideal time to buy a home which matched a record high.
? 15% believe that now is an ideal time to sell your home
? Those surveyed believe that median home rental costs will increase by 4% within the next year.
? 48% of respondents believe that the price of home rentals with increase within the next year
? 5% of those surveyed believe that the price of home rentals will decline within the next year.
? 69% of those surveyed indicated that if they were forced to relocate, they would purchase a home. This is a 6% increase compared to last month’s survey and the high percentage recorded since the survey was conceived.
? 27% of those surveyed indicated that if they were forced to relocate they would rent. which is a 5% decrease from last month’s survey and the lowest amount recorded since the survey began.
? 36% of respondents indicated they believe that the economy is on the proper path to recovery
? 42% of those surveyed stated that their personal financial conditions would remain the same over the next year. This is a 4% decrease since last month.
? 43% of respondents expect their personal financial situation to improve within the next 12 months.
? 18% of those surveyed believe that their household income has improved over the last 12 months which is a 4% increase since last month’s results and the lowest amount recorded since last November.
? 55% of those surveyed reported that their household expenses have remained the same over the last year.