For the first time since 2007, a majority of Americans expect home prices to surge from year-ago levels, according to a recent Gallup poll.
Over the next year, 51% of Americans surveyed by Gallup anticipate that average home prices will increase in their local areas—the first time in six years it has been above 50%.
While the housing crisis and its aftermath had skewed American perceptions into more pessimistic waters, rebounding home prices have added to an increasing optimism surrounding the real estate market.
In 2005, Gallup asked survey respondents about their expectations for local home values and found that 70% expected prices to rise. In 2006 and 2007, these expectations hovered near 50% before plummeting to 29% in January 2008, according to past results.
Homeowners living in the Western region of the country feel more optimistic about their homes’ values than any other region in the U.S., with 62% anticipating a value increase in 2013.
In other regions, Gallup notes that just under half expect their home values to increase. Additionally, Gallup found those living in cities and suburban areas are more optimistic of their home values improving than those living in rural areas.
Many Americans are even confident their home values have exceeded purchase prices, with 63% of homeowners saying their house is worth more than when they bought it—up from the 53% reported last year.
Still, the effects of the housing “slump” have not completely vanished, writes Gallup.
“Although the percentage of Americans saying their home is worth more than when they bought it is up significantly from last year, it remains well below prior levels,” writes Gallup.
Moving forward, economists say they expect the “strong” housing market to continue this year as low interest rates and increased demand for housing supply continue to remain in place.
Written by Jason Oliva