A recent survey, published by Fannie Mae, the government-sponsored enterprise, indicated that 93% of U.S. consumers are convinced that home prices will increase between now and 2015, going up by a steady rate of three percent annually.
Fannie Mae conducts monthly surveys among 1,000 households around the country, inquiring what Americans think is the state of the housing market.
The latest survey completed in May reveals that consumers begin to feel optimistic as 68% of those surveyed said now is “a good time to buy a home.”
Consumers’ attitude does not come as a surprise, considering that compared to 2013, home values in some cities have increased between 10% – 20%.
For example, in Phoenix, San Francisco, and Los Angeles single family home values have jumped 20%, while condos have even better value.
The survey also asked consumers whether they expected mortgage rates to go up, down, or stay the same a year from today. Only five percent said that mortgage rates will drop.