Americans nevertheless think housing is a good financial investment

A recent survey indicated that most Americans think real estate is a good investment. Since the recession began, the average value of a house has plummeted by more than thirty percent, and more than a quarter of all homeowners owe more to the bank on the mortgage than their houses are worth. Housing prices will recover eventually. It may take awhile, though.

Real estate confidence in Americans

The majority of Americans are confident in housing investments even with the economic downturn, a survey noted. Reuters states that 81 percent of Americans thought that a long term financial investment in housing was a good idea according to the Pew Research Center. More than 2,000 adults were surveyed by phone by the Social and Demographic Trends project, part of the Pew Research Center, and 37 percent “strongly agreed” that a house is the best long term financial investment, and 44 percent “somewhat agreed.” Most people believe that housing values will recovered within three years, but 23 percent said that they wouldn’t have bought their house if given the choice again.

April showers and May flowers

The current 2011 trend will hopefully be reversed in spring and summer when sales are expected to pick up, reports MSNBC. Realtors and real estate industry analysts are concerned that the number of underwater homes and lower demand will keep home sales and home values down for some time. This year, a 7.3 percent increase in home sales is anticipated by the National Association of Realtors though. Most housing industry experts say that the lenders are making recovery difficult since they’re being unwilling to lend.

Downturn fuels skeptics

The real estate industry is in a hard place right now. The American Dream is danger because of this. Robert Shiller, Case-Shiller Index co-founder, was quoted in a USA Today article that said security and lifestyle reasons are the only ones that people have to purchase a home. There was another economist that talked about the return on a home. Generally, the return is around 6 percent. With depressed costs, along with agent fees and other closing costs, it might be far lower than that for several individuals.

Citations

Reuters

reuters.com/article/2011/04/12/us-usa-housing-survey-idUSTRE73B0T220110412

MSNBC

msnbc.msn.com/id/42521765/ns/business-real_estate/

USA Today

usatoday.com/money/economy/housing/2011-03-20-home-ownership.htm