Housing Recovery Unlikely Until 2014?

Fifty-four percent of American adults say they believe a housing recovery won’t occur for another three years, or possibly even later, according to an annual survey of more than 2,000 U.S. adults by Trulia and RealtyTrac, which evaluated attitudes toward home ownership and foreclosures.

In a November 2010 survey, Americans were a little more optimistic that a recovery would happen sooner. About 42 percent said they thought the market would turn around by 2012 or had already turned around. Yet, in the most recent survey in April, that has now dropped to 23 percent who see a recovery in sight by 2012, and a majority who see a recovery further down the road.

“Most Americans, as our latest survey revealed, overestimated how quickly the housing market would bounce back, but when it does, it will likely be a long and gradual process,” says Pete Flint, CEO of Trulia. “Looking at the recent double dips in home prices, I expect the rest of 2011 to be volatile for real estate. On the flip side, mortgage rates won’t stay low forever and even if home prices continue to fall for a bit, now is still a good time to enter the housing market.”

Indeed, according to Trulia’s latest data, owning a home is more affordable than renting in 78 percent of the major U.S. cities.

The public is eyeing deals in the real estate market, too. In the survey, about 56 percent of renters and 47 percent of current home owners say they are at least somewhat likely to purchase a foreclosed home. Many of those surveyed say that they expect to pay 38 percent less for a foreclosure property than for if they would buy similar home not in foreclosure.

Source: “Trulia and RealtyTrac Survey Reveals 54 Percent of American Adults Now Believe Housing Recovery Remains Unlikely Until 2014 or Later,” Trulia.com (May 18, 2011)