While many consumers were still uncertain about the future of the overall economy, last month their outlook regarding the housing market improved significantly.
Only 11 percent of Americans anticipate home prices to decline during the course of the next year, according to a survey conducted by Fannie Mae. This is the lowest the share has been since the survey's inception.
However, even though this outlook was promising, many potential homebuyers will continue to wait on the sidelines, as they hope for improvement in their personal financial situations.
"Not surprisingly, we see consumers' attitudes about their household finances remain cautious in this month's survey, and they continue to show signs of job worries and financial stress," said Fannie Mae senior vice president and chief economist Doug Duncan.
Meanwhile, even though the Federal Reserve plans to try to hold mortgage rates low until at least 2014, nearly 36 percent of respondents believe rates will rise during the next 12 months.
Additionally, the property inventory thinned significantly during recent months, as many homeowners determined it was a bad time to sell. However, the survey found 16 percent now feel it's a good time to sell. While this share is relatively small, it's the highest it has been in the survey's history, and could cause the housing supply to grow in the near future.