Consumers feel more secure about the stability of the U.S. housing market in the coming 12 months, according to the Federal Reserve Bank of New York's March Survey of Consumer Expectations, released Monday morning.
Consumer expectations of median home price changes in the coming year ticked down by eight basis points to 3% in March, from February's 3.08%, indicating that consumers view the housing market as more stable. March results are essentially in line with the downward trend spotted since the second half of last year.
Consumers in the South are the only group expecting larger changes in median home price, with a reading climbing to 3.08% in March from last month's 3.00%. The rest of respondents, however, expect a smaller deviation in home prices in the next 12 months, with a reading of 3.07% for consumers in the West, followed by those in the Midwest (2.99%) and the Northeast (2.46%).
The gap among age groups narrowed in March. Middle-aged consumers (aged 40 to 60) expect the median home price change to be less volatile, by 3.00% compared to February's 3.52%, whereas younger consumers (under 40) bumped up their expectations to 2.91% from last month's 2.47%. Consumers aged over 60 remain relatively steady, expecting the median home price to change by 3.02% in the year head, only marginally smaller than their February expectation of 3.05%.
The median consumer expectation for household income growth in the coming 12 months rose to 2.59%, the highest since October 2015, following an increase to 2.50% in February from January's 2.22%. This continued rebound has narrowed the gap between median household income growth and expected home price change, which has been spotted lately.
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 March survey results here >>