More consumers expect to see more ups than downs in the U.S. housing market in the next 12 months, according to results of the Federal Reserve Bank of New York's February Survey of Consumer Expectations, released Monday morning.
Median home prices are expected by respondents to the February survey to climb by 3.08% from January's 11-month low of 3% but to remain below the historical average. The rebound in expected home-price changes is consistent with the timing of Spring selling season, when home buyers push up demand and builders push up prices.
Consumers in the West expect the largest change in home prices (3.71%), followed by consumers in the Midwest. Consumers in the South and Northeast region were both confident in a relatively stable housing market, expecting a moderate 3% change in future home prices.
Consumers under the age of 40 years-old remain most optimistic among all consumer age groups surveyed, with a median prediction of 2.47%. Increasingly, consumers between the age of 40-60 years-old see the most volatility in the market, with an expected home price change of 3.52%. Older consumers aged above 60 remain steady with an expected 3.05% home price change.
The median consumer expectation for household income growth in the coming years increased to 2.5% in February from January's 2.22%, widening the gap between household income growth and home price change. The gap has narrowed substantially over the past two years.
The New York Fed interviews approximately 1,200 people from a rolling panel each month for the Survey of Consumer Expectations, and each respondent participates in the survey for up to a year. Read more about February survey results here >>