While consumers' confidence in their ability to buy or sell a home grew in May, the amount of competition for buying a home decreased, according to public property records.
Competition for home sales falls slightly
A recent Redfin report shows that the amount of bidding wars decreased from April to May, and at 69.5 percent, it closely resembles the rate of bidding wars in May of last year. This number fell from the 73.3 percent of competing Redfin offers recorded in April.
Decreases in bidding wars could indicate a cooling market, but the news source attributes the small dip to a rise in supply of houses, which lessens the need to battle over a home. Property data shows that 6.4 percent more homes hit the market from March to April, which is a the first increase of its kind since 2010.
Roughly 40 percent of survey respondents said that they feel as though the economy will continue to heal, and 41 percent said that they expected their personal financial situation to improve over the next year. A survey low of 13 percent was hit among those who said their household income is notably lower than it was last year.
Consumer confidence on the rise in May
At 76 percent, the majority of consumers who responded to Fannie Mae's National Housing Survey last month said that now would be a good time to buy a house, an uptick from March and April's 71 percent. A record high of 40 percent of respondents said that now would be a good time to sell a home, up from 30 percent in April. This time last year, only 16 percent of consumers thought that it would be beneficial to sell their home. Both numbers are unprecedented since the National Housing Survey's inception in 2012.
"This jump may foreshadow a gradual return to more normal levels of housing supply from their lows of recent months," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "In turn, increased housing supply could serve to temper increasing consumer home price expectations."
Those price expectations currently reflect the rise in home prices from the past few months. The average price is currently $165,000, according to RealtyTrac, which denotes a rise of 1 percent since March 2012.