Americans continue to have strong aspirations to own a home, according to the newest Fannie Mae Quarterly National Housing Survey.
The survey found that despite the recent housing crisis, most Americans continue to believe that owning a home is preferable to renting. These findings came from people across all education levels and demographic groups.
It appears that people are beginning to act on those beliefs and get off the fence: ERA Real Estate’s Spring Selling Season Survey, which asked for local market insights from ERA® brokers and agents, revealed that there is a growing confidence in the housing market, evidenced by an increase in homes going on the market:
• 52.6% of survey respondents saw a year-over-year increase in the number of listings on the market in their area
• 33.3% attributed the increase in listings to low interest rates; 32.6% to an improving economy getting people off the fence; and, 23% to this year’s mild winter
Consumers are also recognizing the tremendous pricing opportunities today’s market offers. Trulia’s recent Rent vs. Buy index reported that owning a home is more affordable than renting in 98 out of the nation’s 100 largest metropolitan areas – including New York, Los Angeles and Boston.
Ken H. Johnson, a professor of real estate at Florida International who has studied the buy vs. rent question, and was recently quoted in a CNNMoney article, agrees that home prices nationally have bottomed. “The ship has turned. Markets should slowly start to recover. Housing will return to its traditional role of a safety investment,” he says, adding another incentive to buy.