The US housing market remains healthy, despite economic pessimism rising to its highest level in a decade, according to Fannie Mae’s November Home Purchase Sentiment Index (HPSI).
Overall, the index dropped 0.8 points to 74.7 in November – with 74% of consumers saying that it’s a good time to sell a home and 29% of respondents thinking it’s a good time to buy. Compared to the same time last year, the HPSI was down 5.3 points.
“While consumers expressed even greater concern regarding the direction of the economy, with the share of respondents expressing pessimism hitting a 10-year high, overall housing sentiment remained stable,” said Mark Palim (pictured), Fannie Mae deputy chief economist. “Consumers’ concerns for their personal job situation have eased, and respondents also reported feeling better about their income level compared to a year ago, with both of those components now nearing their pre-COVID levels.”