Americans’ Short-Term Confidence in Housing Starting from Scratch
Although 2010 appeared to be the beginning of a rise in investor and homeowner confidence in the housing market, new numbers from Rasmussen indicate that short-term confidence in the U.S. housing market is right back where it started at the beginning of the year, with only 18 percent of homeowners expecting the value of their homes to rise in the next year. In fact, 28 percent of homeowners actually are expecting their home’s value to decline in the next year.
On the brighter side, 41 percent still believe that their home will have increased in value by the time 5 more years roll around, but even that is down from last month’s 45 percent[1]. While this is not necessarily stellar news for much of anyone in the housing market, it could give real estate investors something of an edge since homeowners may be less likely to keep “holding out” on their distressed properties and start working creatively to sell them or find some other solution outside the conventional methods of home buying and selling.
Do you think that this decrease in confidence will impact your ability to invest successfully?
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[1]http://www.rasmussenreports.com/public_content/business/housing/august_2010/only_18_expect_their_home_s_value_to_increase_over_the_next_year