Overall confidence in the US housing market continues to gain despite concerns about rising interest rates, especially among younger buyers.
The latest survey of homeowner sentiment from Berkshire Hathaway HomeServices shows most prospective homeowners (62%) are optimistic about the economy and the real estate market (68%); as are most existing homeowners (economy 61%, real estate 70%).
Among existing homeowners, the optimism is driven for almost half by lower interest rates while 43% said it was down to higher home values.
Across all respondents, optimism is increasing due to an uptick on construction with three quarters saying that more availability will help market momentum.
“Optimism in the real estate market and economy are at levels we have not seen since we first began fielding this survey in 2015,” concluded Gino Blefari, president and CEO of Berkshire Hathaway HomeServices. “Mortgage rates remain near historic lows even with recent upticks, and we’re seeing rising wages, job growth and construction rates, which continue to make homeownership a compelling and realistic investment for many Americans.”
The survey shows that 75% of prospective homebuyers and 83% of current owners are more optimistic about construction in urban areas, building homes near to their workplaces.