Consumer optimism in the housing market may lead to a stronger close to the year for real estate, according to Prudential Real Estate’s third-quarter Consumer Outlook Survey of more than 2,500 Americans who are in the market to buy or sell.
Eighty-two percent of respondents say housing is moving in the right direction, a 3 percentage point jump from the first quarter. What’s more, nearly 70 percent of potential buyers surveyed say the final months of the year are a more ideal time to buy or sell.
Millennials held the highest optimism about the direction of the housing market, at 85 percent.
“Younger Americans seem to be gaining confidence in housing as the economy improves,” says Stephen Phillips, COO of HSF Affiliates. (Prudential Real Estate is part of the HSF Affiliates LLC family of real estate brokerage franchise networks.) “Pent-up housing demand caused by the Great Recession may be starting to loosen.”
Why now? Fifty-eight percent of respondents flag lower interest rates as the top reason why they’re interested in making a move in real estate now. Sixty-two percent say they are considering transactions before interest rates rise again.
Also, Americans are getting more optimistic about securing financing for a home purchase. Nearly half of all respondents say they believe it is easier now to secure mortgage financing, up 2 percentage points over the first quarter, according to the survey.
“Consumers may be shopping for more this holiday season, and homes may likely be on their list,” says Earl Lee, CEO of HSF Affiliates LLC. “Our data shows people understand the opportunities in housing now, and because they feel better about their personal situations, many say they are ready to capitalize.”
Source: Prudential Real Estate