Consumers remain optimistic regarding the housing market
Jul 9 2012 1:20PM
While economic news on a national level continues to be somewhat mixed, many consumers remain somewhat positive about the housing market nationwide, which may boost the outlook for Hollywood real estate.
According to a poll conducted by Fannie Mae, 35 percent of consumers expect home prices to go up in the next year, which is the highest percentage since the survey started more than two years ago.
In addition, 73 percent felt that it was a currently a good time to buy a home, which matches the highest ratio in the history of the report. Roughly 15 percent feel that it is currently a good time to sell.
"While consumers remain cautious about the general economy, their attitudes toward the housing market continue to improve," said Doug Duncan, senior vice president and chief economist of Fannie Mae.
The higher levels of positivity may be driven at least partially by more negative indicators related to the rental market, as consumers expect home rental costs to increase 4 percent over the next year, with just 5 percent of people feeling that rents will drop. Rental price increases have been driven by a reduction in the national homeownership, which has increased demand and reduced property owners' concessions.