By AZ Business Magazine | Via AZBigMedia
The Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index (HPSI) decreased 2.3 points in July to 74.2, moderating slightly after two consecutive months of advances. Three of the six HPSI components decreased month over month, with consumers reporting a significantly more pessimistic view of homebuying conditions but a more optimistic view of home selling conditions. Year over year, the HPSI is down 19.5 points.
I’m not sure the data here does much other than tell us consumers are perceptive: prices are indeed rising and it is a good time to sell. The index may very well be down, but if the inference is that this has or will affect housing demand negatively, the inference is wrong. Demand is at 15 year highs now and my suggestion to home shoppers is buy now because the prices will be higher tomorrow, next week, and a year from now.
Jim Belfiore, Real Estate Consultant
