Because of an improved overall economy and job market, experts forecast the housing market to have it’s best year in 8 years. However, even with the gains, prices for homes are outpacing income growth and as a result.
The latest Home Purchase Sentiment Index (Fannie Mae) finds home buyers are hesitant and exercising caution. The Index which looks at attitudes of home buyers and home sellers decreased a bit in November, however, the current level remains very high.
Fannie Mae’s senior vice president and chief economist, Doug Duncan doesn’t view the findings as unexpected. Mr Duncan said, “The latest reading of the Home Purchase Sentiment Index remains near the survey's high witnessed in June, exemplifying the theme we laid out at the beginning of the year: the economy drags housing upward.” He continued, “While aggregate income growth has gradually picked up with a continually improving labor market, consumers' assessment of their income over the past year has not yet shown sustained improvement, partially weighing on overall sentiment.”
Mr Duncan explained that until folks are more confident financially, they are likely to remain hesitant and exercise caution when it comes to purchasing.
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