Homeowners and potential homebuyers like renters are confident about where the housing market is heading, with seven in 10 renters expressing confidence in their ability to afford a home, according to the quarterly Chase Housing Confidence Index (HCI) by Chase Home Lending in partnership with Pulsenomics.
The HCI measures and tracks key dimensions of consumer confidence in housing markets across the U.S. using data collected in the U.S. Housing Confidence Survey. It entails compilation of response data from more than 15,500 household surveys completed by homeowners and renters across the country. The index uses a scale of 0-100 and levels above 50 are positive readings.
The overall confidence level measured on the HCI for June was 66.3 points, with households in the West leading the country’s housing market optimism. According to the survey, Dallas, Denver, and Las Vegas recorded the highest housing confidence level and saw an increase of more than eight points since the inception of the HCI in 2014.
On the question of whether it was a good time to buy or sell a home, both homeowners and renters across the country agreed that now was a good time to buy. “By a ratio of nearly three-to-one, the number of households who believe ‘now is a good time to buy a home’ exceeds the number who said now is a bad time,” the survey said. “That ratio was even higher in the South and the Midwest regions of the country, where more than one-half of respondents said it was a good time to buy.”
Only 17 percent said it was a bad time to buy, with most citing affordability as their main concern. “Affordability remains a top focus for buyers in the market today, but we are encouraged by the overwhelmingly positive outlook across the country,” said Amy Bonitatibus, Chief Marketing Officer for Chase Home Lending. “We have found innovative ways to address some of the affordability concerns by tackling the main barriers to homeownership with education grants, as well as down payment, closing cost assistance and low down payment products.”
Among potential homebuyers, the survey revealed that nearly 60 percent of renters across the country were looking to buy in the next five years, with 70 percent of those renters being millennials. The survey found that renters who were most positive about being able to buy a home in the next five years came from the South with 62 percent of respondents from this region looking to purchase soon.
In fact, Dallas topped the list for the strongest homeownership aspirations with 80 percent of renters in the city confident about buying a home someday and 70 percent planning to purchase in the next five years as a growing job market in the region spurred their positive outlook.