Fannie Mae says Consumers are Optimistic About Home Prices

“Due to an improved economy consumers remain optimistic that home prices will increase”, says Fannie Mae in their latest National Housing Survey (Federal National Mortgage Association).

Fannie Mae also indicated that a large number of consumers believe that home prices will improve within the next year. However, many of those surveyed continue to adopt a “wait and see” attitude, while others continue to believe that home prices will continue to drop.

To be more specific, out of the consumers Fannie Mae surveyed, 22% believe home prices will improve in the next year home prices to stay the same, and 22% expect it home prices to continue to decline.

Although the survey focused on an improvement in consumer expectations many are still very concerned about the country’s overall economy and the trajectory of housing prices.

Fannie Mae also said that the market will continue to adjust within the next five years, due largely to changes in housing policy. Fannie Mae anticipates major improvements in the real estate market as most policies changes will be implemented within a 5 years

In related news, a new bill called The Fairness in Foreclosure Act (H.R. 3566) has been introduced that aims to limit the time in which a bank can bring deficiency judgments against foreclosed properties. At present, the time frame where a bank can bring a deficiency judgment varies from six months to six years.

If enacted, The Fairness in Foreclosure Act would prohibit banks from pursuing deficiency judgments more than 12 months after foreclosure and restrict deficiency judgments against all low-income families. Hopefully, this bill will help give consumers greater optimism over real estate and home prices.

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Lydia Puller is a Luxury Short Sale Specialist, a Certified Distressed Property Expert (CDPE), CIAS certified Realtor and author who specializes in “strategic” and “hardship” short sales in the San Francisco Bay Area. Lydia’s short sale team helps homeowners in Marin County, Sonoma County, San Francisco County, Alameda County and Contra Costa County.

To learn more about short sales, go to http://www.LuxuryShortSale.com or http://www.ShortSalesMarinCounty.com. To search all short sale and pre-foreclosure listings visit www.LydiaPuller.com