Households more confident in real estate industry

Consumer confidence regarding the economy remains uncertain, but many Americans are more optimistic about the future of the housing market.

Consumer confidence regarding the economy remains uncertain, but many Americans are more optimistic about the future of the housing market.

The majority of households expect home prices to increase by at least 1.6 percent by the end of 2012, according to a survey conducted by Fannie Mae. Only 11 percent feel property values will decline, which is the smallest share recorded since June 2010.

"Consumer attitudes toward the housing market remain modestly positive, despite signs of increased concern over the direction of the economy," said Fannie Mae senior vice president and chief economist Doug Duncan.

Additionally, 73 percent of respondents believe it's currently a good time to purchase a home. However, this could decline in the near future, as 40 percent feel mortgage rates will increase during the next 12 months, which could make the prospect of taking on a home loan less affordable.

In contrast, 18 percent say current housing conditions make it a good time to sell, the highest percentage recorded since the survey's inception in 2010. This may be the result of rising home prices, which have increased on an annual basis for 15 consecutive months.



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