More Americans Optimistic About Homeownership

Prudential recently released results of its first quarter Consumer Outlook Survey showing that Americans’ sentiment toward real estate is growing increasingly favorable. A full 77% of consumers feel that the real estate market and property values will recover, representing a four-point improvement from year-end results and seven-point jump over the same period a year ago.

According to the national survey, home ownership remains important to 96% of Americans, especially among women and Generations X and Y. So what is motivating the optimism?  Prospective buyers are motivated by historically low interest rates (currently in the low 3-4% range) and attractive home prices in many markets. In fact, 87% of respondents said Americans considering a home purchase believe that now is the time while mortgage rates and prices are low.

“Anticipation seems to be building for both buyers and sellers this spring buying season,” said Prudential California Realty Broker/Owner Bob Majorino. “Consumers are aware that the market is moving and, with growing optimism, more people are realizing their dreams of homeownership.”

Prospective home-sellers indicated that “finding the right house to buy first” and “making a profit” were the primary reasons they would list their homes this spring. For those considering selling in this low inventory market, they have a major opportunity to make a profit at this time, while still managing to move up or down and still get a great deal. Multiple offers are rapidly driving home prices up and the demand for home sellers is at an all time high.

Additional Key Observations Include

• 87% of sellers are committed to seeing a sale through if their home doesn't sell quickly, and 67% are open to additional guidance from their broker/agent on how to better market their home. 62% are willing to make repairs or redecorate in order to attract more interest.
• Among all age groups surveyed, Generations X and Y remain most confident that real estate and property values will recover.
• 78% of women said homeownership was “very important” vs. 70% of men.

“Our survey data shows that people are feeling better about their personal situations and the U.S. economy,” said Stephen Phillips, chief operating officer for Prudential California Realty's parent company HSF Affiliates. “At the same time, respondents’ views of residential real estate have grown increasingly favorable. We believe more consumers will enter the market this year to capitalize on mortgage and pricing opportunities and to secure their part of the American dream.”

The full survey details are available upon request. An infographic illustrating survey findings is available here.

Prudential Real Estate Outlook Survey MethodologyInterviews with 2,500 Americans who are “in the market” to buy or sell a home were conducted online by Edelman Berland in February, 2013. Respondents are aged 25-64 with a household income of at least $50,000, and either recently bought/sold a home or are considering buying/selling a home. The margin of error is ± 2.0% for all respondents.

For buyers or sellers looking to take advantage of the outstanding market conditions, or to refer a friend who is considering buying or selling, please visit www.prucalhomes.com to contact an agent today!