The Fannie Mae Home Purchase Sentiment Index® (HPSI) outdid its past record high for confidence in housing this past month. The index rose 0.6 percentage points month-over-month and 6.1 points year-over-year. The boost is attributed to optimistic sellers who are benefiting from the rising home prices.
This idea is supported by chief ecnomist and senior vice presidnet at Fannie Mae, Doug Duncan, "the HPSI edged up to another survey high in May, bolstered in part by a fresh record high in the net share of consumers who say it’s a good time to sell a home." However, he notes that this optimism may not be across the board. "The perception of high home prices that underlies this optimism cuts both ways, boosting not only the good-time-to-sell sentiment but also the view that it’s a bad time to buy, and presenting a potential dilemma for repeat buyers, " says Duncan.
New data from the HPSI reveals that 46 percent of homeowners are optimistic about selling, which is an increase from 45 percent a month prior. However, homebuyers optimism about purchasing decreased from 29 percent to 28 percent.