Findings from the Federal Reserve Bank of New York’s 2019 SCE Housing Survey determined households expect home prices to rise at a slower pace relative to last year.
A majority of households continue to view housing as a good financial investment, although the share believing that housing is a very good investment declined in all regions.
The survey is part of the broader Survey of Consumer Expectations (SCE). The findings are from the sixth installment of the SCE Housing Survey, which has been fielded annually since 2014.
The findings showed average home price change expectations at both the one- and five-year horizons fell relative to last year, and households’ perceived downside risk in home prices increased slightly. Attitudes toward housing as a financial investment remained strongly positive, with 65 percent of all respondents believing buying property in their zip code is a very good or somewhat good investment, the same level as in 2018. Also, households perceive mortgage rates, in general, have risen about 40 basis points since last year, and that the rate they would be offered has risen about 30 basis points.
The SCE Housing Survey provides rich and high-quality information on consumers’ experiences, behaviors, and expectations related to housing.