Incidental improvement in the housing market is being noticed as consumer sentiment stabilizes, according to a new survey from Fannie Mae. The group’s November National Housing Survey revealed home price expectations moved from negative to positive territory for the first time in six months, with respondents expecting home prices to increase by 0.2 percent over the next year. This places consumer sentiment in line with Fannie Mae’s Economics & Mortgage Market Group’s November forecast of temporary economic improvement during the third and fourth quarters of 2011, leading into a slower economic growth path in 2012. “Though their home price expectations have become slightly positive, consumers remain concerned about the direction of the economy and continue to view their household finances as being relatively flat,” says Doug Duncan, vice president and chief economist of Fannie Mae. “Most Americans expect no improvement in their personal financial situation in the next 12 months and will likely remain wary about undertaking the significant financial obligation associated with homeownership until their view of their income, expenses, and job security heads in a more positive direction.” The survey also reveals thirty-two percent of Americans now say they would rent their next home, while 63 percent say they would buy, down 3 percentage points since last month and a return to the level seen in September.
