Confidence in housing is at a new record, with the Fannie Mae Home Purchase Sentiment Index® (HPSI) outdoing its past peak. The boost was ignited by optimism from sellers, who are benefitting from increasing prices. At 92.3, the Index rose 0.6 percentage points month-over-month and 6.1 points year-over-year.
"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," says Doug Duncan, chief economist and senior vice president at Fannie Mae. "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."
According to the HPSI, 46 percent of homeowners are optimistic about selling, an increase from 45 percent a month prior, and 28 percent of homebuyers are optimistic about purchasing, a decrease from 29 percent a month prior.
The HPSI is derived from Fannie Mae's National Housing Survey® (NHS).