Market confidence
Last Saturday it was a cool 35 degrees in the foothills. Sunday morning we discovered 5 inches of new snow had landed overnight. A year ago at this time it was 75 degrees. This morning we are in the clouds with rain. Summers and the fall are pretty consistent weather patterns but winter and spring can bring unexpected weather. And like the weather the real estate market continues to change but we all have confidence that spring and summer is on the way.
Americans remain confident that housing values will continue to flourish and that the high-flying market will come in for a smooth, soft landing instead of a crash. Fewer than 15 percent of Americans surveyed in a Bloomberg/Los Angeles Times poll expect home prices in their neighborhood to fall during the next six months. More than twice that, 36 percent, see prices rising during that time. Investors making more than $100,000 a year are even more optimistic: 43 percent of the affluent expect prices to rise and only 12 percent predict a decline.
The average U.S. home price has risen 36 percent since 2002, according to the Office of Federal Housing Enterprise Oversight. The increase has fueled concern among some economists and consultants that residential real estate is in the midst of a bubble that may burst and drag down the economy. Most U.S. homeowners don't agree, however. The majority of those polled, almost seven in ten, expect the value of their homes to appreciate by five percent to 30 percent during the next three years. Affluent investors are again more optimistic, with almost eight in 10 predicting such price gains.
More than a third of the 2,563 adults polled from Feb. 25 to March 5 singled out real estate as the place they would put most of their money if they had a $1 million windfall to invest. Mutual funds came in second with 13 percent, followed by stocks with 12 percent. If it doesn’t stop raining I think I will put my money into a very large boat.
Americans remain confident that housing values will continue to flourish and that the high-flying market will come in for a smooth, soft landing instead of a crash. Fewer than 15 percent of Americans surveyed in a Bloomberg/Los Angeles Times poll expect home prices in their neighborhood to fall during the next six months. More than twice that, 36 percent, see prices rising during that time. Investors making more than $100,000 a year are even more optimistic: 43 percent of the affluent expect prices to rise and only 12 percent predict a decline.
The average U.S. home price has risen 36 percent since 2002, according to the Office of Federal Housing Enterprise Oversight. The increase has fueled concern among some economists and consultants that residential real estate is in the midst of a bubble that may burst and drag down the economy. Most U.S. homeowners don't agree, however. The majority of those polled, almost seven in ten, expect the value of their homes to appreciate by five percent to 30 percent during the next three years. Affluent investors are again more optimistic, with almost eight in 10 predicting such price gains.
More than a third of the 2,563 adults polled from Feb. 25 to March 5 singled out real estate as the place they would put most of their money if they had a $1 million windfall to invest. Mutual funds came in second with 13 percent, followed by stocks with 12 percent. If it doesn’t stop raining I think I will put my money into a very large boat.
posted by Ken Calhoon at 10:59 AM
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