Consumer confidence in homebuying hits all-time low

by Ryan Smith11 May 2016
Fewer people than ever before think it’s a good time to buy a home, according to new data from Fannie Mae.

Fannie Mae’s latest Home Purchase Sentiment Index showed that the share of Americans who feel that it’s a good time to buy a home has dipped to 30%, an all-time survey low.

And while the percentage of Americans who think it’s a good time to sell rose 16 percentage points in April, other indicators on the index were mixed. More Americans are confident about not losing their jobs, but the share of survey respondents who said their income was significantly higher than it had been 12 months ago stayed essentially flat.

Still, Fannie Mae senior vice president and chief economist Doug Duncan was optimistic about the market’s potential this year.

“We can partially attribute the sizable gain in April in home selling optimism both to a correction for last month’s unexpected dip and to typical seasonal strength in housing activity in the spring and summer,” Duncan said. “Even after accounting for these factors, continued tight housing supply has led to renewed strength in home price appreciation, making selling a home a more attractive prospect this year in particular. This improved sentiment could provide an extra boost of much-needed supply for the spring selling season.”


  • by Griff | 5/11/2016 11:35:34 AM

    In my area, as many others, it is a seller's market. I feel this seller's market is different because if I were a seller I'd put my home on the market RIGHT NOW. Houses are selling in hours in my city. So my question is why more sellers are not listing their homes. There is an underlying reason, and I think it all backs up to the housing collapse 8 yrs ago. Wall street and bankers have more than recovered, but main street still is not confident. Jobs have recovered, stock market has recovered so we should be more stable, however, there is no trust going forward after this year. If Trump ends up in Washington it will be a disaster for main street. The only plan he has is to build a wall. If Hillary does we may not see as much relief for main street as is over due.

    I have a daughter who has been house hunting for about six weeks now. Given my profession, it is depressing for even ME that homes that overpriced homes are selling in hours. Not a good time to buy. So call that reason #2.

  • by BCM | 5/11/2016 12:30:14 PM

    This post is over simplistic...what does a "wall talking point" have to do with the article? Here's another view. Trump is in Real Estate. Trump is a businessman. The reason that there is no confidence is that the Government has OVER REGULATED the markets where the degree of difficulty for businesses to operate has forced corporations to hunker down and stick money in Treasuries...which is why the rates on the 10 yr. Treasuries is so low. In comes a person to push back on this BIG GOVERNMENT wet blanket and all of a sudden trillions of dollars flows from corporations in plant expansion, hiring and market expansion.
    Stop the blind Trump bashing....people like this only listen to the media who claim that a Trump Presidency is the end of the world as we know it and have no original thought. It's a little more involved than that my friend....

  • by Perfparjer | 5/11/2016 12:46:03 PM

    Agree with BCM. Free thinkers and optimists will see the coming political shake up as an opportunity for cleansing of the current political party stranglehold on our economy and liberty. Trump has turned many in our political class into paranoid schizo's and I revel in their continuous lies to all regarding a Trump presidency.


Should CFPB have more supervision over credit agencies?