For the second straight month, housing sentiment increased in May with the Fannie Mae Home Purchase Sentiment Index was up 0.6% to 92.3.
But while sellers are getting more optimistic about selling, buyers are not so convinced that now is the time to part with their money or take out a mortgage.
The net share of sellers who think now is a good time to sell was 46%, up 1 percentage from April and up 14 percentage points from May 2017; but the net share of buyers who think it’s a good time to buy was flat from a year ago after declining to 28% (from 29% in April).
“The HPSI edged up to another survey high in May, bolstered in part by a fresh record high in the net share of consumers who say it’s a good time to sell a home. However, the perception of high home prices that underlies this optimism cuts both ways, boosting not only the good-time-to-sell sentiment but also the view that it’s a bad time to buy, and presenting a potential dilemma for repeat buyers,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.
Almost half of respondents think that home prices will rise in the next 12 months while (49% net share) while there is little expectation of mortgage rates decreasing by this time next year (-49%).
The net share of those who reported their household income has improved in the last 12 months was up 3 percentage points to a new record high of 21%.
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