Zillow’s new survey-based index gauging consumer sentiment about housing markets and homeownership indicates that more U.S. consumers feel positive about real estate market than not.
All households had a real estate confidence index of 63.7, according to the telephone-based survey of 10,000 consumers conducted by Pulsenomics LLC on behalf of Zillow. The Zillow Housing Confidence Index ranges from 0 to 100 with marks above 50 indicating positive sentiment.
Consumer real estate sentiment was positive in all 20 large metros Zillow tracks in the study, topped by San Jose at 69.4, Miami at 67.5 and San Diego at 67.5.
The index includes a “Homeownership Aspiration” component that measures renters’ attitudes and likelihood of pursuing homeownership. Nationwide, renters had an aspiration index of 59.3, indicating that more renters than not aspire to be homeowners.
In addition, 10 percent of current renters nationwide said they plan to purchase a home within the next 12 months.
Zillow estimates that 4.2 million first-time homebuyers would flood the market if all renters purchase a home who indicated that they’d like to in the next 12 months.
Zillow announced the biannual housing confidence index last week. Robert Shiller and Karl Case — the fathers of the widely followed S&P/Case-Shiller Home Price Indices — served as “honorary advisers” in its development.