Many Americans feel they have borrowed too much relative to their income by investing in housing, but the outlook is improving, says a new survey from Absolute Strategy Research. Overall, optimism is getting stronger, although it does still vary by region, the survey finds.
“Our survey shows optimism towards housing varies greatly by region,” the findings state. “Those in the Far West and in the Northeast* are more inclined to believe that house prices in their area have risen, and are much more optimistic about the outlook for the coming year.”
The outlook is in contrast to the Great Lakes region where housing remains the greatest challenge and people think prices are down 45% year over year. Respondents there are the least optimistic of any region, according to the findings.
“…the call on house prices is not simply “just about housing”; it seems to go to the core of how U.S. households view the economic outlook. Those that are bullish on the outlook for house prices are more positive across the board,” the survey states.
The survey cut respondents into two groups: the 32% of those who believe house prices will rise over the next year, and everyone else. This showed the anxiety about house prices is clearly associated with negative economic behavior, and aligns with economic struggles such as job insecurity. Those with a pessimistic view are much more likely to have been burned by housing in the past.
Written by Elizabeth Ecker