Home prices are climbing across the country, and that has made homeowners more bullish when it comes to the prospects of selling. Seventy-five percent of more than 2,700 households recently surveyed say it’s a good time to sell a house; 68 percent say it’s a good time to buy, according to the National Association of REALTORS®’ second quarter Housing Opportunities and Market Experience (HOME) survey.
“Hopefully this strong seller optimism will lead to an increase in inventory later on in the year,” says Lawrence Yun, NAR’s chief economist.
Fifty-five percent of consumers say they believe that home prices will continue to increase in their communities over the next six months, up from the previous quarter (53 percent), according to NAR’s report.
In the second quarter, however, optimism for buying stayed stagnant. Thirty-nine percent of consumers strongly agree now is a good time to buy, while 29 percent moderately agree. A decreasing number of renters are upbeat about buying, dropping from 55 percent in the first quarter to now 49 percent in the second quarter. Optimism for buying is highest among older buyers 65 or over, as well as those living in the South and Midwest regions, the report found.
“Inventory remains the driving force in real estate, affecting everything from rising prices to household formation,” Yun says. “Improving supply conditions is critical to improving buyer optimism and helping to remove some of the barriers holding back potential first-time buyers.”
Overall, consumers are more optimistic about the economy. Fifty-eight percent of households surveyed said they thought the economy was improving, with people in rural areas the most upbeat about economic conditions, according to the survey.
Their optimism over the economy has also helped more consumers believe that they would have an easier time to obtain a mortgage. “This is most likely a reflection of the current positive outlook on the direction of the economy,” Yun says. “Healthy job creation and faster wage growth mean that homeownership is viewed as a more attainable goal than it was a year ago.”