This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Finally, Homeowners Are Ready to Sell

NEW YORK (TheStreet) -- In housing, it takes two to tango. Buyers have known for some time that low prices and low interest rates make it a good time to shop for a home, and now sellers are getting on the bandwagon. That could help solve the low-inventory problem that has dogged the market.

Fannie Mae's April National Housing Survey found growing optimism about the housing market.

"The share of respondents who believe now is a good time to sell a home increased for the third consecutive month to an all-time high of 42%, an encouraging sign since many potential homebuyers will need to sell a home before entering the purchase market," Fannie Mae said.

The percentage of people who felt it was a good time to buy a home held steady at 69%.

Must Read: Comics Creators Find Superpowers in Business Alter Ego

This doesn't mean there aren't problems. This survey, like others, found that many potential buyers worry they cannot get a mortgage given the tough standards lenders have today. But one of the other big deterrents to home shopping, concern about job security, is easing, Fannie Mae said.

"Consumer attitudes about the current home selling environment have improved and now are at the most favorable level we've seen in the survey's four-year history," said Doug Duncan, senior vice president and chief economist at Fannie Mae.

"Consistent with Friday's upbeat jobs report, concern about job loss among employed consumers also has hit a record survey low. These results are in line with our expectations for increased housing activity and gradual strengthening of the housing market going into the spring and summer selling season."

One reason potential sellers feel going to market now makes sense: They don't see much upside in waiting. The survey found that people expect home prices to rise by only 2.9% over the next 12 months. Potential sellers also probably realize they have a better chance of landing a buyer while mortgage rates are still low.

Only 5% of those polled expected home prices to fall over the next 12 months. That's reassuring to buyers, who obviously don't want to purchase a home that would be worth less later.

"The share of respondents who say mortgage rates will go up in the next 12 months decreased to 52%, and those who said they will go down increased to 7%," the survey reported. On balance, this means consumers don't see much benefit in waiting to get a mortgage, so they might as well start home shopping now. By a vast majority, those polled expected rents to go up rather than down, creating another incentive to buy.

None of this foreshadows a red-hot housing market anytime soon, as the survey found respondents still wary of the economy. But the news is more good than bad, suggesting the housing market will continue its slow climb.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs