Rising consumer confidence may in turn support overall economic growth, according to Fannie Mae’s November 2012 National Housing Survey. As the market steadily recovers, consumer attitudes across various indicators demonstrate an increased hopefulness toward the nation’s future economic state.
The number of consumers who believe the economy is on the wrong track reached 50% for the first time since the survey’s inception, while those believing it is on the right track reached 44%.
Consumers who believe home prices will decline in the next 12 months increased four percentage points since October, representing 14% of participants.
On the other side of that is a one percentage point increase of those who think prices will rise, now at 37%, which the data notes ties the survey’s high in that particular category.
Of note is the lessening of the gap between buyers and sellers. Those thinking it is a good time to sell increased five percentage points to 23%, while buyers remained unchanged from October at 72%.
“On the housing front, attitudes about the current selling environment continue to improve, with a significant increase in those saying it would be a good time to sell,” said Doug Duncan, senior vice president and chief economist of Fannie Mae.
Additionally, the share of respondents who say their household income is significantly higher than it was 12 months ago climbed two points to 21%. Decreasing by the same margin, those that said the opposite reached 14% for November.
“This growing confidence in a housing recovery, in addition to other factors, may reinforce growing consumer optimism regarding the improving direction of the general economy,” said Duncan.
Written by Jason Oliva