According to Fannie Mae’s December 2015 Home Purchase Sentiment Index, Americans were feeling more confident about their jobs, income, and outlook as last year came to a close. In fact, four of the six index components saw improvement from the month before, including the percentage of respondents who said it is a good time to sell a house, those who feel home prices will continue to rise, the number of participants who aren’t concerned about losing their job, and those who said their income has increased significantly over the past year. Doug Duncan, Fannie Mae’s chief economist, said the results could mean more prospective home buyers will be shopping for a house this year. “Consumers ended the year on an improved note with regard to their income, job security, and overall economic outlook,” Duncan said. “Brightening economic prospects, if sustained, should stimulate demand for homeownership. However, continuing upward pressure on rental prices and constrained housing supply, particularly for starter homes, may mean prospective first-time home buyers could face affordability constraints.” Despite increasing affordability concerns, the residential real estate market had a strong 2015 and, with a positive economic outlook and increased demand, this year may see additional improvement. More here.
