Fannie Mae: Sellers still thriving as home prices stay high

Nearly half of survey respondents believe home prices will keep rising

Sellers, rejoice. Roughly 77% of respondents to Fannie Mae’s Home Purchase Sentiment Index (HPSI), a composite index designed to track the housing market and consumer confidence to sell or buy a home, said now is a good time to sell. That’s up from 67% the prior month.

To boot, a reported 64% of survey respondents said it’s a bad time to buy a home, up from 56% last month.

Overall, the HSPI decreased by 0.3 points to 79.7 in June 2021. Year over year, the overall index is up 3.2%.

The percentage of respondents who say home prices will go up in the next 12 months increased one percentage point to 48%, and the percentage who say home prices will go down also increased to 21%.

One group that continues to feel the pain of high home prices is first-time homebuyers — even with mortgage rates remaining at historically low levels, said Doug Duncan, Fannie Mae’s senior vice president and chief economist. However, low inventory remains an issue, and homes are still being snatched up as soon as they hit the market, he said.

“It’s likely that affordability concerns are more greatly affecting those who aspire to be first-time homeowners than other consumer segments who have already established homeownership,” Duncan said. “But despite the pessimism in homebuying conditions, we expect demand for housing to persist at an elevated level through the rest of the year.”

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