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Friday, May 11, 2012

Homeowners Bullish on Home Prices?

Homeowners Bullish on Home Prices?

The U.S housing market had already received some good news this week, as Transunion reported that the U.S. residential home mortgage delinquency rate (defined as the number of home mortgages more than 60 days past due) fell for the first quarter of 2012 to 5.78%.

The two previous quarters had seen a rise in such delinquencies, but the good news in the first quarter leaves mortgage delinquencies at their lowest levels since the first quarter of 2009, when the U.S. economy was mired in a deep recession.

TransUnion also sees a "modest" improvement in home prices, an estimate shared by U.S. homeowners themselves these days.

In a separate study by Fannie Mae -- its most recent National Housing Survey -- homeowner sentiment on home prices, and their ability to sell their homes, are both on an upward path.

"Overall, consumer views of housing market conditions have become more supportive of home purchases, and sustained healthy hiring is required to help realize these improved expectations," he adds. "Friday's report of a second consecutive setback in job creation supports the view that the housing recovery will remain uneven this year."

Even so, Fannie Mae reports that Americans expect residential home prices to rise by 1.3% over the next year, as confidence in the economy rose to 37%, according to the survey, up from 35% in April. Consumers also reported "higher incomes" and more say that it's a "good time" to sell a home.

Some other highlights from the study include: 

12% told Fannie Mae their personal financial situation will worsen in the next 12 months, consistent with February and March as the lowest value in more than a year.

23% of respondents expect an increase in their personal income from 12 months ago, a 2% increase from March and the highest level recorded during the past year.

32% of respondents expect home prices to increase over the next 12 months.

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