More than half of Americans think home prices will continue to rise over the next 12 months, a new Bankrate.com report says.
A full 53% of Americans think home prices will gain, and only 8% expect home prices will slip. The results were consistent despite gender, age, income and education differences.
Last year at this time, 55% of Americans said home prices would rise over the ensuing 12 months, and they were correct. Nine percent predicted a decline.
“Housing, like the stock market, is something consumers look to as an indicator for whether things are headed in the right direction,” said Greg McBride, Bankrate.com’s chief financial analyst. “When home prices fall, everyone gets a little queasy – homeowners and renters alike. The expectation of continued home price increases underscores an expectation for continued improvement in the job market, household finances and the overall economy.”
Bankrate.com reported that its Financial Security Index registered 100.4 in September, indicating improvement over one year ago as well as over the past two months.
Bankrate.com’s Financial Security Index has been over 100 – the level that illustrates improvement over the past year – in seven of the first nine months of 2014.
Notably, September brought a big divergence on feelings of financial security between men and women.
Men’s feelings of financial security improved on all five components that Bankrate.com measures compared to August, while women’s feelings were the exact opposite, falling on all five components compared to last month.
Job security grew in August, with 26% of Americans feeling more secure in their jobs and just 14% feeling less secure than one year ago.
Net worth showed continued improvement, with 27% of Americans reporting higher net worth compared to 20% reporting lower net worth than one year ago. Record highs in the stock market as well as continued increases in home prices contributed to these readings.