Consumers expect home prices will decline over the next 12 months and rents will increase, according to a new monthly consumer survey commissioned by Fannie Mae.
On average, the respondents expect values will decline 0.5% by June 2012 with rents rising by just under 4%.
In general, 22% of consumers expect home prices will rise, while 25% believe values will fall. Roughly 49% expect they will stay about the same.
The new survey offers a "comprehensive view of the marketplace that didn't exist before," said Fannie Mae chief economist Doug Duncan. "There has been strong interest across the industry for a monthly consumer attitudinal data set of this size."
Almost 70% of the 1,000 consumers surveyed said now is a good time to buy a home. However, they also know it’s tough to sell a house. (Only 11% of respondents said it’s a good time to sell a home.)
The survey also asked about household finances. Nearly two in five consumers expect their personal finances to improve over the next year. Fewer than one in five expect their financial situation to worsen.
"We see a continued lack of confidence among consumers on home prices, the ability to sell their homes, and the state of their personal finances – all of which points to housing as a continued downside risk to economic growth going forward,” Duncan said.
The GSE hired an outside firm, Penn Schoen Berland, to conduct the interviews.
