Half of Americans Think Housing Market Will Improve in 2013

What was once a trickle is now a gush: Positive housing market headlines are splashed across every major newspaper in the country.

As the news spreads, housing market optimism is replacing the homeowner heartache of years past. Thanks to rising home prices and improving economic conditions, more and more Americans are speaking about homeownership in a positive way.

“The Market is Good…and Getting Better!”

Housing Market on the Rise

Home buyers are back, and they’re happy.

“The future of the housing market looks bright!” says a jovial bunch of national poll respondents. Those who feel the housing market will improve in 2013 now outnumber the pessimists by a margin of more than 3 to 1.

Here’s a look at the cold hard numbers: A February Bloomberg National Poll revealed more than 50 percent of Americans feel the housing market will get better in the next 12 months. Only 16 percent expect the market to decline, and 31 percent expect the market to stay about the same.

But is housing market optimism a mere pipe dream? Not so, says Lawerence Yun, chief economist for the National Association of Realtors. In this case, housing price hopefulness appears to reflect real-time market conditions.

“Home sales are on a sustained uptrend, mortgage interest rates are hovering near record lows and unsold inventory is at the lowest level in 12 years,” Yun said in a recent press release.

“The Value of MY Home Will Rise!”

In other positive news, a growing number of Americans have confidence in the climbing value of their own homes.

Housing market

Home owners expect the housing market recovery to continue.

The Bloomberg Poll found 27 percent of Americans expect the value of their individual homes to increase by the end of 2013, 34 percent expect home values to stay about the same, and 16 percent expect their home values to decrease.

February’s poll results show an improvement in confidence from December. Two months ago, only 20 percent of home owners predicted the value of their homes would climb, and 20 percent predicted lower prices.

“It’s a Stellar Time to Sell!”

Other polls also reflect growing enthusiasm for the housing market. Buyers can’t help boasting their job security and home price confidence, and pollsters at the Fannie Mae National Housing Survey are listening.

“The housing market continues to firm, with consumer home price expectations for both rental and ownership properties near the strongest levels that we’ve seen in the survey’s two-and-a-half-year history,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.

In one of the Fannie Mae survey’s most notable findings, the percentage of respondents who think it is a “good time to sell a home” climbed to 23 percent in January.

If 23 percent doesn’t seem impressive at first glance, consider these two points:

  • Only 11 percent felt January 2012 was a “good time to sell a home”
  • “Is it a good time to sell a home?” is a loaded question. Anyone who remembers the housing boom of the early 2000’s has a hard time viewing a post-2006 selling environment as “good.”

“I’m Young, and I DO Want to Own a Home!”

Housing market

Contrary to popular belief, Millennials do want to become homeowners.

Millennials (frequently labeled “Generation Rent”) have zero interest in homeownership, right?

Wrong. Nearly all young renters plan to buy a home in the future, says a December study by Trulia. Of Millenials, consumers ages 18 to 34, nearly 93 percent plan to become homeowners.

“Millennials have been shaken, not scarred by the housing bust,” said Jed Kolko, Trulia’s Chief Economist in a press release. “Nearly all of them want to own a home someday, if they’re not homeowners already.”

What are folks in YOUR area saying about homeownership? Let us know in the comment section below!

 

Photos courtesy of apdk, Andrea_44 and CB and GK