The Federal Reserve Bank of New York’s Center for Microeconomic Data released its June 2015 Survey of Consumer Expectations this week. Highlighted in this article from DS News, the survey indicates that consumer expectations for the housing market and the U.S. economy are growing more positive.
The survey found that home price change expectations rose to 3.5%, their highest level this year, and median earnings growth as well as household spending growth expectations increased from the prior month. Median consumer inflation expectations at both the short and medium term horizon continue to be stable, while labor market expectations also continued to improve and credit availability expectations were largely unchanged.
According to the New York Fed, median home price change expectations rose from 3.3% in May to 3.5% in June, its highest reading this year, but still below the 2014 average of 3.8%. The survey credits southern respondents as the cause for the rise in median home price expectations. On the other hand, median home price uncertainty declined from 3.6% in May to 3.1% in June, the lowest reading since the survey began.
Last week, Fannie Mae’s June 2015 National Housing Survey found that consumer attitudes toward the current condition of the home selling market and future home rental prices may launch purchase activity forward for the rest of 2015. Optimism among consumers about the housing market has reached new survey highs and strong job and income growth are making consumers appear more favorable in the selling market, indicating a possible increase in the existing home supply.
