About 61 percent of Americans think June was a good time to buy a home according to a new survey from Fannie Mae which wrapped up just before COVID-19 cases started spiking in many states outside the Northeast.
The 100-point monthly Home Purchase Sentiment Index, created from responses to a survey between June 1 and June 21, increased in June by nine points to 76.5. The index is down 15 points compared to the same time last year.
The survey found the percentage of respondents who said it was a good time to buy a home increased from 52 percent to 61 percent, while the percentage who said it was a bad time to buy decreased from 39 percent to 27 percent. As a result, the net share of Americans who said it is a good time to buy increased 21 percentage points.
“A second month of improvement in June allowed the HPSI to regain some of the sharp losses in optimism observed in March and April,” Fannie Mae Senior Vice President and Chief Economist Doug Duncan said in a statement. “The share of renters who say it’s a good time to buy a home is now at its highest level in five years, suggesting favorable conditions for first-time homebuying, consistent with the recent rebound in home purchase activity. Homeowners seem to have taken note of the resulting lack of housing supply, with an increased share saying it’s a good time to sell a home. However, this activity may cool again in the coming months, depending on the extent to which it can be attributed to consumers having chosen to delay or to accelerate homebuying plans due to the pandemic. Survey respondents’ persistent, substantially elevated concerns about job security in the face of record unemployment remains a key takeaway, particularly among renters and homeowners with a mortgage. We believe the continuing uncertainty regarding the coronavirus’ containment suggests an uneven and potentially volatile course toward economic recovery.”
However, the survey concluded just as COVID-19 cases in Texas, Arizona, California and Florida began to spike as those states emerged from their own lockdowns.