Rasmussen: Pessimism About Housing Prices and Earnings

Only 44% Expect Homes to be worth more in FIVE YEARS.

30% Expect Homes to be worth less in FIVE YEARS

 

Homeowners are more pessimistic about the short-term housing market, but now fewer than half the nation’s homeowners expect the value of their homes to go up in the next five years.

 

The latest Rasmussen Reports national telephone survey of 720 Homeowners shows that just 19% of homeowners believe their home’s value will go up over the next year, down slightly from last month. But 30% expect its value to go down in that time, tying the highest level of pessimism in two years of surveying. Roughly half (49%) think their home’s value will remain about the same over the next 12 months as it is now. (To see survey question wording, click here.) Feelings about further down the road are getting gloomier, too. Only 44% believe their home’s value will go up in the next five years. That’s down six points from last month and is just three points above the lowest level measured in almost two years. In 2010, the number of homeowners who expected values to increase in five years ranged from a low of 41% in August to a high of 55% in April. Sixteen percent (16%) now expect the value of their home to go down in the next five years, the second-highest finding in two years. Thirty-three percent (33%) predict their home’s value will remain about the same. (Want a free daily e-mail update? If it’s in the news, it’s in our polls). Rasmussen Reports updates are also available on Twitter or Facebook. The survey of 720 Homeowners was conducted on March 15-16, 2011 by Rasmussen Reports. The margin of sampling error is +/- 4 percentage points with a 95% level of confidence. Field work for all Rasmussen Reports surveys is conducted by Pulse Opinion Research, LLC. See methodology. Men are much more confident than women when it comes to both short- and long-term home values. Higher-income homeowners express more confidence about five years down the road than those who earn less. Investors share similar views with non-investors about home values in a year’s time, but they are much more optimistic than non-investors when it comes to home values five years from now. Recent polling shows that workers nationwide are less optimistic about their future earnings. Data from the Rasmussen Consumer Index shows that consumer and investor confidence have fallen since February. Earlier this month, 59% of American Adults said interest rates will be higher one year from now.

4 Responses

  1. Sites like Zillow rely on public information which can be months behind. They also do not take into account any Seller paid concessions to the buyer like closing costs which lowers the actual price of the home itself. Use them for ball park figures only.

  2. Corelogic and Zillow will tell us, what our home is worth .

  3. Both groups are correct ,, homes will be worth more in USD and worth less in absolute terms as inflation kicks in.

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