There is optimism regarding the housing market and now a majority of American’s feel more positive according to survey results from Gallup. As part of the “New American Consumer” series investigating housing and homeownership, Gallup polled more than 2,000 Americans and 1,400 homeowners for their opinions on home prices and the state of the market. Other data measured reasons for renting vs. buying and current and projected homeownership.
Gallup’s data showed that 51 percent of those surveyed expect home prices to rise in their area over the next year- the first time since 2007 that this number has risen above 50 percent. Last year, only 33 percent of respondents answered in this way.
This years results showed that 34 percent of Americas stay prices will stay the same, down from 44 percent last year. Only 14 percent said prices will fall, down from 23 percent.
Gallup analyst Jeffrey M. Jones said, “Americans’ views of the housing market became understandably more pessimistic during the housing criss and its aftermath. But with the housing market picking up again, so has Americans’ optimism about home prices.”
Residents on the West are more optimistic and 62 percent expect prices to rise. Second is the East, with 49 percent anticipating price gains, followed by the South at 48 percent and the Midwest at 44 percent.
More homeowners are seeing the benefits of rising prices. In Gallup’s 2012 survey, only 53 percent of U.S. homeowners said their house was worth more than they paid for it, down from more than 90 percent in 2006. In the most recent survey, 63 percent say their home is now worth more than they paid, showing evidence of recovery in home values.
Americans are continuing to see the market as favorable for purchasing. This year, 73 percent of respondents said that now is a good time to buy a house, the highest share since 2003 when 81 percent answered that way. Jones even said that in depth of the housing crisis, the percentage never fell below 50 percent, showing that consumers look for various factors when gauging the strength of the market.
Jones said, “For example, when prices dropped, Americans may still have believed it was a good time to buy a home because lower home prices provided a favorable buying opportunity. Also, regardless of market conditions, Americans may generally just believe buying a home is a good thing to do.”