The expiration of the home buyer tax credits won’t deter optimistic households who believe the market is improving, according to a survey released last week.
More than 90 percent of those surveyed believe the home buyer tax credits have helped both first-time buyers and the overall housing market, but 65 percent say that the end of tax credits won’t reduce their personal interest in buying a home.
Over the next five years, 79 percent expect real estate prices to increase and 20 percent expect prices to rise substantially. Only 12 percent believe prices will decrease. Among renters, 75 percent believe owning a home is a better long-term choice for them than renting.
The majority of consumers also believe that homeownership is a good investment, with 75 percent saying it is better than stocks or bonds, 72 percent preferring it to mutual funds and 74 percent saying it surpasses savings accounts.
(Source: Prudential Real Estate and Relocation Services, Inc.)
One factor that will help the value of homes is the lack of new construction over the last several years. As we continue to have growth but the supply becomes limited this will eventually help with home values. I certainly have noticed a change over last year in the perceptions of buyers. Last year most my buyers were nervous about values continuing to drop. Now none of my buyers are expressing this anxiety.