Home sellers are feeling good about 2021!
Home sellers are chomping at the bit. As the economy reopens, vaccinations continue to roll out and stimulus checks reach bank accounts across America, home sellers are increasingly optimistic.
And despite fierce bidding wars, competition from institutional investors and sore wrists from writing dozens of heartfelt letters to home sellers, even buyers are growing in courage these days.
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, increased in March by 5.2 points to 81.7.
Four of the HPSI’s six components increased month over month, including the components related to homebuying and home selling conditions, household income, and home prices. The mortgage rate outlook component experienced the only decline in March’s HPSI, with the latest results indicating that only 6% of consumers believe that mortgage rates will decrease over the next 12 months.
Fannie Mae Senior Vice President and Chief Economist Doug Duncan said the March HPSI increase reflects consumer optimism toward the housing market and the economy in general.
“There might even more intensity this year, since 2020’s spring homebuying season was limited by virus-related lockdowns,” Duncan said. “Home-selling sentiment experienced positive momentum across most consumer segments, nearly reaching pre-pandemic levels and generally indicative of a strong home seller’s market.” Tim Glaze, Housingwire April 27, 2021