The FINANCIAL — Short-term confidence in the U.S. housing market has fallen back to the level it was at the beginning of the year, and long-term confidence is at its lowest point in over 18 months.
A new Rasmussen Reports national telephone survey finds that just 18% of American homeowners now think the value of their home is likely to go up in the next year. That’s down four points from last month and 13 points from April.
Twenty-eight percent (28%) of homeowning adults think the value of their home is likely to go down in the next year. Last month, 30% felt that way, the highest finding in over a year.
"As for five years down the road, 41% expect their home’s value to have increased by then, but that’s down from 45% a month ago and 55% in April. Fifty-nine percent (59%) felt that way in December 2008 when Rasmussen Reports first asked the question. Fourteen percent (14%) still think the value will go down, and 36% predict it will remain about the same," Rasmussen Reports says.
Twenty-eight percent (28%) say they owe more on their mortgage than their house is worth, marking little change from recent surveys. Fifty-seven percent (57%) say their house is worth more than what they still owe on it. In December 2008, 61% of homeowners said the value of their home was higher than what they owed on their mortgage.
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The survey of 640 Homeowners was conducted on August 12-13, 2010 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.
Home sales remain sluggish, despite near-record low mortgage rates and the government's tax credit program for first-time homebuyers which is now coming to a close.
Fifty-one percent (51%) of Americans continue to believe a home is the best investment families can make, but that’s down 12 points from December 2008 and 28 points since the summer of 2008.
Only 21% disagree and say it’s not the best investment, but 29% aren’t sure.
Among homeowners, 54% rate a home as a family’s best investment.
In early July, one-in-seven homeowners (14%) said they are at least somewhat likely to miss or be late with a mortgage payment in the next six months.
Rumors have circulated that the Obama administration is considering a partial mortgage forgiveness plan to help those who owe more than their homes are worth. Just 28% of voters favor such a proposal.
Investors are as pessimistic as non-investors about the housing market in the short term but are much more confident about its long-term prospects.
Those who earn more than $60,000 per year are much more likely than those who make less to say that their home is worth more than what they still owe on their mortgage.
Adults over age 40 believe more strongly than those who are younger that a home is the best investment families can make.
Sixteen percent (16%) of Americans now consider themselves to be among the working poor.
Most Americans (61%) think it is better for the economy if the government stays out of the housing market.