The Fannie Mae Home Purchase Sentiment Index (HPSI)
reached an all-time high last month when it increased by 5.6 percentage points from January to an 88.3 level. The HPSI also increased on a year-over-year basis by 5.6 percent. Five of the six components that comprise the HPSI were up, and three hit record highs.
Fannie Mae also reported that the net share of Americans who say it is a good time to buy a house rose 11 percentage points to 40 percent, while those who say it is a good time to sell increased by seven percentage points to 22 percent, a new survey high.
“The latest post-election surge in optimism puts the HPSI at its highest level since its starting point in 2011,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time homebuyers. Preliminary research results from our team find that Millennials are accelerating the rate at which they move out of their parents’ homes and form new households. However, continued slow supply growth implies continued strong price appreciation and affordability constraints facing millennials and first-time buyers in many markets.”