Federal Reserve Bank of New York survey findings determined households expect home prices to increase at a faster pace over the coming twelve months than was expected last year.
The 2022 SCE (Survey of Consumer Expectations) Housing Survey provides information regarding consumers’ housing-related experiences and expectations.
Regarding homeowners, the survey collects information on mortgage debt, past actions, and foreclosure or refinancing, in addition to expectations related to such future actions as taking out new debt or investing in the home.
The focus on renters addressed preferences for owning versus renting and perceptions targeting the ease of obtaining mortgage credit and expectations of evictions, among other actions.
Key survey findings include households’ home price change expectations for the five-year horizon were unchanged from last year. Households anticipate prices will rise by 2.2 percent per year on average for the next five years; the average expected probability of buying a home if the household were to move within the next three years decreased to 60.7 percent from 68.5 percent in 2021; and households perceive mortgage rates were unchanged relative to pre-pandemic levels at 5.9 percent, but the expectation is they would increase in the future.