Selling is sounding more appealing. The percentage of Americans who reported now is a good time to sell zoomed to a record high in May, according to Fannie Mae’s latest Home Purchase Sentiment Index, based on a survey of about 1,000 Americans on their views about the housing market. Meanwhile, the net share of Americans who say now is a good time to buy fell 8 percentage points and reached a record low last month.
Read more: 48% of Homes Sell in Less Than a Month
“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market,” says Doug Duncan, Fannie Mae’s chief economist. “However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market, perhaps due in part to concerns over finding an affordable replacement home. Prospective homebuyers are likely to face continued home price increases as long as housing supply remains tight.”
Overall, Fannie Mae’s Home Purchase Sentiment Index dropped 0.5 percentage points in May to a reading of 86.2. Three of the six index components posted larger net decreases than the three components that posted increases. The index, however, is still up 0.9 percentage points compared to a year ago.
Here are some additional insights from the latest index reading:
Source: Fannie Mae