Americans’ Optimism About Home Prices Surges This Year

Gallup’s annual Economy and Personal Finance Survey of more than 2,000 Americans and 1,400 homeowners reveals that more than half believe average home prices in their areas will rise over the next year, marking the first time that figure has topped 50 percent in six years. Regionally, 62 percent of those from the West expect home prices to rise, compared to slightly less than 50 percent in other parts of the country. Sixty-three percent of homeowners polled say their houses are worth more than the purchase price, up from 53 percent in 2012. By age, 52 percent of homeowners under age 50 and 71 percent of those aged 50 and up say their homes are worth more than when they bought them. The finding signals that younger homeowners made more recent purchases and were more affected by the housing downturn. An estimated 73 percent of respondents believe now is a good time to buy, marking a 10-year high; that figure was 87 percent among those earning $75,000 or more, 76 percent among middle-income Americans, and 55 percent among those earning less than $30,000. The survey indicates that the housing market has stabilized, residential prices are on the rise, and upper-income Americans are the most optimistic about home purchases. | Read More