In April 2014 survey by Gallup, 56% of Americans expect home prices to rise in their local area. This is up from 33% just 2 years ago.
Folks living in California expressed the highest optimism with more than 73% who believe their home values will continue to rise. That’s compared to 44% of Eastern US residents which are optimistic about the rise of home values. Midwest and South numbers were 53% and 54% respectively.
This poll estimated 64% of Americans are homeowners. 74% of the group involved in the survey believe their home is now worth more than when they bought it, up from 63% last year and 53% in 2014. Even with the increase, though, these perceptions have still not fully recovered to what Gallup measured in 2006 and 2007, when upwards of 90% of homeowners said their home value exceeded their purchase price.
Couple with the data from another Gallup Poll that showed Americans prefer Real Estate to any other forms of investments including Gold, Stocks, Saving Account and Bonds by a decent margin.
What’s promising in the results of the survey is that hat Real Estate is the top choice across all age and income groups. And with housing prices improving across the country, Americans are developing more faith that real estate is the best choice for long-term investments. But the favorable response to home ownership is associated with views of real estate as an attractive investment opportunity. This implies that among groups with lower home ownership rates, like lower-income and younger Americans, still looking elsewhere for investment options.
American’s optimism and preference for real estate investment might be what fuels their answer about if it’s a “good time or bad time” to buy a house? 74% of the respondents agreed that it’s a good time to buy another home which is up from only 52% in 2006.
Well, we are happy that Real Estate investments are still the top choice of most Americans in 2014. Where are you investing your dollars these days!? Let us know.