Americans are more confident about the stability of home prices today than they were at the beginning of 2010, according to the most recent Fannie Mae national housing survey, released this week.
The survey, which was conducted in the fourth quarter of 2010, shows 78% of respondents believe housing prices will hold steady or will increase over the next year. This is an improvement from 73% of respondents who shared the same sentiment in January 2010. The housing sentiment is more positive than the general economic outlook, which hovers at 61% who believe the economy is on the wrong track; virtually unchanged from last year.
“Over the course of the last year, we gained deeper insights into Americans’ confidence in the strength of the housing market and the economic recovery,” said Doug Duncan, Vice President and Chief Economist of Fannie Mae. “More Americans believe that housing prices will remain stable over the next year. We also are seeing encouraging signs in the positive attitudes toward homeownership among younger Americans, despite the severe impact of the housing crisis on Generation Y. But most respondents to our survey continue to lack confidence in the strength of the economic recovery, and they are less optimistic about their ability to buy a home in the years ahead. This sense of uncertainty is weighing on the housing recovery today and reshaping expectations for housing for the future.”
In terms of Americans’ feelings about buying homes, 64% believe buying a home is a safe investment, down from 70% in January of last year. Additionally, 74% believe it will be harder for future generations to get mortgages, and 33% of delinquent borrowers say they have considered defaulting on their mortgages. that number has declined from 39% in January 2010.
Click here to view the complete survey key findings.
Written by Elizabeth Ecker