This Spring, the Fannie Mae National Housing Survey took a telephone poll to ascertain how 1,000 Americans felt about housing issues. They were investigating people’s attitudes toward:
1. Owning a home vs. renting a home: Which is the best option?
2. What is higher: Home or rental price fluctuations?
3. Homeownership distress: How serious do you think it is?
4. The economy and family budgets: How are you doing?
5. Overall consumer confidence: How do you think the economy is doing?
Fannie Mae has been conducting such surveys each Spring since 2010.
How Do You See Housing Issues?
Overall, Americans expressed concerns about the “economy and their household income.” This is giving many in the lending industry the impression that caution appears to be weighing on housing growth. It is feared that the results of this poll might “mean that potential homebuyers see several reasons to return to the wait and see attitude that helped flatten the market in 2011 and 2012.”
According to the Fannie Mae Poll, a whopping 57 percent of the respondents think the economy is still headed in the wrong direction. Doug Duncan, senior vice president and chief economist at Fannie Mae stated, “Consumers’ lukewarm income expectations and reticence about the economy seem to be holding back housing demand.”
He added, “While recent housing activity suggests that the worst of the housing slump may be behind us, this caution among consumers supports our expectation that the rebound in home sales will likely be too modest to pull sales for all of 2014 ahead of last year.”
A Bright Light In The Statistics!
Nonetheless, we were encouraged that those who believe we are on the “right track” have increased their numbers from 35 percent to 38 percent in May.
Palm State Mortgage suggests a more optimistic view of the statistics might be that homebuyers are simply holding back for a few months because they think there
“might be more opportunities ahead, most notably in the area of home values.”
Take a look at how rapidly prices have risen since they flat-lined in early 2012. In some areas this rapid rise and new, higher interest rates have reduced the number of elusive affordable homes.
In the May survey, only 48 percent of the respondents said they thought prices would go up in the next year. For all we know, some people are just taking their time shopping for the perfect house.
This tells us that perhaps we can not make assumptions simply based on 1,000 opinions. The mortgage markets are radically different in different areas of this vast USA. Polls can set dangerous trends; they are random cold facts, and they are open to interpretations.
Polls are Snapshots!
Polls are just snapshots of the picture. They are not the whole panorama!
If you feel that this is the perfect time for your family to buy a house, we will be the first to help you find the perfect mortgage to go with it. No poll, not even as prestigious a poll as the Fannie Mae Poll, can dictate what might be best for every individual. We are here to assist you, and we will give you an honest opinion if the time is “right” for you, based on your individual, confidential and financial information.
A Happy Day For Dads!
As always, Palm State Mortgage Company thanks you for reading our blog. We also want to be among the first to send our gratitude and honor to Dads everywhere.
Father’s Day celebrates the joy of a family, united by ties that bind children to their Dad. How ironic, that often a tie is the perfect Dad’s Day gift!
There can be no better time to send our good wishes to all the Fathers in Orlando, In Florida, In the USA, On the Earth, and In the Universe!
In their honor, we print the following quote as a special tribute:
“Father taught us that opportunity and responsibility go hand in hand. I think we all act on that principle;
on the basic human impulse that makes a man want to make the best of what’s in him and what’s been given him.”
— By Laurence Rockefeller
