September saw housing confidence rise, matching June's all-time high. While respondents of Fannie Mae's monthly sentiment survey say that high prices are still the biggest obstacle for entry-level homeownership, more current renters state now is a good time to buy, and the belief that home prices would go up in 2018 is less pervasive.
In response to Fannie Mae's survey data, CNBC's Diana Glick points out that the numbers don't support this change in attitude. Pending home sales fell in August due to low supply, and the amount of existing homes is low, though the quantity of newly built homes is rising. Reportedly, renters are entering the housing market looking for a newly-built home rather than a starter, potentially due to the longer rental period of millennials, and income growth.
"Demand continues to overwhelm supply in most of the country, and as a result, many would-be buyers from earlier in the year are still in the market for a home, while others have perhaps decided to temporarily postpone their search," wrote Lawrence Yun, chief economist for the Realtors.