Consumer Confidence in the Housing Market Grows

According to a Gallup survey that was released in the middle of April, 77% of Americans expect the prices of homes in their area to either remain the same or to go up over the next twelve months. Furthermore, the survey found that 34% of Americans expect the average price of the homes around them to go up over the next year. These figures represent a 12% increase when compared to last year, which is a good sign that consumers are starting to gain more confidence in the residential real estate market. (In April 2009, the Gallup survey found that 63% of Americans believed the housing prices around them would either increase or stay the same.)

According to Gallup, the low interest rates combined with the increase in consumer confidence will likely lead to more short-term home sales. These sales will then help to stimulate the real estate market as well as the larger economy in general.

The response of consumers to the Gallup survey seems to agree with this prediction, as the survey found that 72% of Americans think now is a good time to purchase a home. These figures have increased slightly when compared to last year, at which time 71% of those surveyed felt it was a good time to purchase a home. When compared to 2008 figures, this percentage has increased by a whopping 19%.