The housing market has shifted and Americans are still adjusting to the change, according to the results of Fannie Mae’s most recent Home Purchase Sentiment Index. The index is based on a survey of Americans which asks them for their perception of the current housing market and their personal financial situation. In July, survey respondents were less optimistic than they’ve been in months past, with fewer participants saying they feel now is a good time to buy or sell a house. But while market sentiment has fallen, respondents say their household income is up from last year and they feel affordability conditions will improve over the next year. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says Americans have mixed feelings about the market. “We believe consumer reaction to current housing conditions is likely to be increasingly mixed: Some homeowners may opt to list their homes sooner to take advantage of perceived high prices, while some potential home buyers may choose to postpone their purchase decision believing that home prices may drop,” Duncan said. (source)
