Homebuyers are becoming increasingly more positive about today’s housing market. According to Fannie Mae’s recent Home Purchase Sentiment Index (HPSI), the number of buyers who say now’s a good time to buy is up seven percentage points for the month—and is nearing its highest point on record.
The HPSI for November weighed in at 87.8—up from just 85.2 in October and 82.2 last year. Currently, about 29 percent of consumers believe it’s a good time to buy a home.
According to Doug Duncan, Fannie Mae’s Senior VP and Chief Economist, November’s HPSI indicates the market may be in for an upturn come 2018.
“In November, the HPSI rebounded to near its all-time high, returning the index to its gradual upward trend and suggesting fairly stable consumer home-buying attitudes,” Duncan said. “These results are consistent with our expectation that the housing market will continue its modest expansion going forward. Next month’s survey should offer the public a first look at the influence that potential tax reform may have on consumers’ views toward housing and the broader economy.”
The HPSI also showed that seller sentiment is up as well. The number of homeowners who believe now is a good time to sell jumped to 34 percent in November—up four percentage points over the month and 21 percentage points over the year.
The number of consumers who believe home prices will rise in the next year also rose, increasing six percentage points for the month, as did the share of people who feel secure in their jobs, which jumped four percentage points in November. According to the HPSI, 46 percent say prices will rise in the next 12 months, while 74 percent say they are not concerned with losing their jobs.
See the full results of the Home Purchase Sentiment Index at FannieMae.com.