Rising prices created a seller's market in May: Fannie

For the second time in three months more people responded that it was a better time to sell a home than to buy one, according to Fannie Mae.

The Fannie Mae Home Price Sentiment Index fell 0.5 percentage points in May to 86.2 as those surveyed were concerned about the continued increase in prices.

"High home prices have led many consumers to give us the first clear indication we've seen in the National Housing Survey's seven-year history that they think it's now a seller's market, said Fannie Mae Chief Economist Doug Duncan in a press release.

For the percentage of those who said now is a good time to sell topped those that said it was a good time to buy.

The net share of Americans who said it was a good time to buy a property fell eight percentage points to 27%, a new low.

The net share of those who believe it is a good time to sell increased six percentage points to a survey high of 32%.

"However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market, perhaps due in part to concerns over finding an affordable replacement home. Prospective homebuyers are likely to face continued home price increases as long as housing supply remains tight," Duncan said.

Fewer people believe interest rates will rise in the next 12 months, down five percentage points to 52%.