Morning Briefing: Consumers lose confidence in home prices

by Steve Randall08 Mar 2016
Consumers lose confidence in home prices
Fewer Americans believe that home prices will increase over the next twelve months according to a survey by Fannie May. Its Home Purchase Sentiment Index increased 1.2 per cent to 82.7 in February but the share of respondents who expect to see higher home prices dropped 4 per cent, following decline in January.

“Our February results show the most modest consumer home price expectations since late 2012,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “A slower pace of home price appreciation may provide some relief for potential homebuyers, especially first-time buyers who couldn’t reap the benefits of selling a home at high prices to buy another one.”

Sixty-three per cent say now is a good time to buy a home, rebounding from a survey-low in January. The net share of those who say mortgage rates will go down rose 2 percentage points to negative 50 per cent this month, as fewer consumers say mortgage rates will go up.
 
There still aren’t enough homes to meet demand
Analysts say that home demand is still outpacing supply and it fueling concern for the wider US economy. New River Investment’s Connor Sen wrote Monday that there are not enough construction workers, one of the reasons builders give for low supply of new homes. Sen says that: “the housing cycle is the business cycle, and on this basis “potential output” should be much, much higher than it is today. We’ve underbuilt housing, particularly single-family, for years, and Millennial housing needs will be immense for the next two decades.”
 
Accreditation for Realtor University
The online training resource for real estate agents created by the National Association of Realtors has been given accreditation by the Distance Education Accrediting Commission. Realtor® University was established to provide a Master’s degree program for real estate professionals and bring even more value to their home buyer, seller and investor client.

NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. “We are excited that this is only the beginning for the university, and there are plans underway to expand the programs available and further advance professionalism in our industry.”

The university offers 8-week courses and taught by PhD-level academics and practitioners. It has the largest real estate library in the world.

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