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Americans Are Divided on Future of Home Prices

Americans are divided as to whether they expect home prices to increase or decrease. About the same proportion of Americans expect home prices to increase as decrease, says an April Gallup poll of U.S. adults.

The expectations of today have improved from 2008 and 2009, according to Gallup, but are not near where they were in prior years when a majority expected home prices to increase.

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The poll also found that Americans see a buyer’s market in housing, with 69% of respondents agreeing that now is a good time to buy a house.

“There appears to be good reason for more than two in three Americans to think now is a good time to buy a house,” Gallup said. “Home prices have plunged in many markets across the country in recent years. The combination of today’s low mortgage rates and low housing prices make affordability as good as it has been for a long time.

“Of course, a big part of the problem for housing is that mortgage finance is dominated by the federal government in the form of Fannie Mae, Freddie Mac, and Ginnie Mae. Mortgage loans are hard to get for anyone who doesn’t have nearly perfect credit and fit the current government loan profile. Prospective homebuyers who buy a home now in one of many local markets face the risk that it could decrease in value in the short term; indeed, 3 in 10 Americans believe housing prices will go down in their communities over the next year.”

View the Gallup poll findings.

Written by Elizabeth Ecker

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