Consumers Are More Optimistic About Homebuying

In June, renters were especially positive about homebuying compared to May. CNBC reports that an index measuring consumer sentiment in the housing market rebounded since its lowest level in April. Overall, 61% of consumers think now is a good time to buy a house and 41% think it is a good time to sell. These numbers are higher than May’s, with only 52% believing last month was a good time to buy and 32% thinking it was a good time to sell. Fannie Mae’s senior vice president and chief economist says the number of renters with positive outlooks is at its highest level in five years.

Current homeowners are also getting slightly more optimistic about the sales market, especially given the lack of housing supply. The percentage of respondents saying now is a good time to sell a home increased from 32% to 41%, although nearly half still think it’s a bad time to sell.

Home sales jumped dramatically in May, after grinding to a halt in March and April. While new listings are coming on the market, the total inventory of homes for sale at the end of May was 19% lower than May 2019, according to the National Association of Realtors. Pending sales in May, which represent signed contracts on existing homes, jumped a record 44% compared with April.

“However, this activity may cool again in the coming months, depending on the extent to which it can be attributed to consumers having chosen to delay or to accelerate homebuying plans due to the pandemic,” said Duncan. 

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