Fannie: Housing Shows ‘Tepid’ Signs of Healing
Home sales are expected to rise 7 percent this year as the housing market continues to make strides toward recovery, according to Fannie Mae’s latest housing market outlook.
“Our outlook is bolstered by improvements in consumer sentiment seen in our National Housing Survey results, which show that consumer views of housing market conditions have become more supportive of home purchases and their outlook on home prices,” says Doug Duncan, Fannie Mae’s chief economist. “Interestingly, we’re seeing a pickup from depressed levels in the good-time-to-sell category, suggesting rising optimism about the housing market.”
According to Fannie Mae’s research, Americans expect home prices to rise 1.3 percent over the next 12 months, which is the highest value ever recorded within the survey.
Still, Duncan says the housing market still has a long way to go toward recovery. After showing strong signs of a turnaround with winter home sales, the spring housing market hasn’t performed quite as strong as expected in the later part of the first quarter, Duncan says. The recovery will most likely be a tepid one, Duncan notes.