Trulia today released the results of its American Dream survey, which has tracked American attitudes towards homeownership since 2008. Harris Interactive conducted this online survey on behalf of Trulia among 2,083 U.S. adults, age 18 and over, between November 15 to 19, 2012.
Americans More Bullish on Buying Homes
Amid rising home prices, increasing home sales, and falling delinquencies and foreclosures, more than 1 in 4 consumers (27 percent) feel more positive about homeownership than they were six months ago, compared with 19 percent who report feeling more negative. In fact, 31 percent of today’s renters plan to buy a home in the next two years—a 9-point increase from 22 percent in January 2011. However, some Americans remain skeptical about owning a home. Only 72 percent of consumers said homeownership is part of their personal American Dream, which remains below February 2009 and January 2010, when 76 percent and 77 percent, respectively, agreed with this sentiment.
|% of renters planning to buy a home within next two years|
Millennials: Battered By Housing Bust, But Not Permanently ScarredDespite coming of age through the years of boom and bust, Millennials (18-34 year olds) haven’t completely written off homeownership. In fact, 72 percent of these young adults say homeownership is part of their personal American Dream, which is the same as the adult population overall. Among renters in this age group, 93 percent plan to purchase a home some day. Meanwhile 43 percent of young adults are homeowners already. Yet despite these long-term aspirations, Millennials have vastly different expectations for the housing market in 2013 than older generations.
|Consumer Expectations for the Housing Market in 2013|
|18-34Year Olds||35-44Year Olds||45-54Year Olds||55+Year Olds|
|Home prices to rise||37%||43%||49%||55%|
|Home prices to fall||22%||15%||19%||18%|
|Mortgage rates to rise||32%||38%||41%||49%|
|Mortgage rates to fall||20%||12%||14%||13%|
|Year Home Was Bought||2002 or earlier||2003-2006||2007-2009||2010-2012|
|% of homeowners at least “somewhat likely” to sell in 2013||20%||23%||20%||33%|
| % of homeowners whose homes are worth more today than at purchase
- “Millennials have been shaken, not scarred by the housing bust,” said Jed Kolko, Trulia’s Chief Economist. “Nearly all of them want to own a home someday, if they’re not homeowners already. But many of them think today’s low prices and low mortgage rates will last. They may be in for sticker shock if the cost of homeownership has returned to normal levels by the time they’re ready to buy.”
- “2013 could be the year that inventory turns around, just as 2012 was the year that prices started recovering,” said Jed Kolko, Trulia’s Chief Economist. “Homebuyers need inventory to choose from, and with fewer foreclosures on the market, new inventory will come from new construction or homeowners wanting to sell. Rising prices will bring out more sellers, especially if price increases lift them back above water. ”