What Do You Think? American Opinions About the Housing Market

by Simon Lindsay on Foreclosures

 Americans have an opinion on everything, from sports to celebrities to world events and everything in between. The housing market is no exception, and not surprisingly, Americans are not afraid to voice their optimism – or lack thereof – regarding the housing market.

According to a recent survey, most Americans believe a recovery in the housing market won’t happen for a few years, until 2014. Furthermore, only 23% believe the market will stabilize by 2012. A study taken just half a year ago had that number at 42% – a steep decline in just six months.

One reason behind this slow “recovery”, according to Americans, is the government. A plurality of 45% of Americans surveyed think the government isn’t doing enough – and 17% think it is doing too much.

In regards to the strong foreclosure market, a whopping 56% of renters and 47% of homeowners are at least somewhat likely to purchase a foreclosure, and expect a price discount of at least 38% on average – a far cry from the pre-2007 days in which a handshake and a signature were basically all you needed to buy a home for 5% above market value in a seller’s market.

Weak demand and difficult loan requirements together are what make this market into a buyers’ market, and most Americans tend to agree.

Plus, with a surplus of inventory – including a historic high of foreclosures – prices have no incentive to stabilize and rebound over the next 12-18 months. A true bottom may not be reached until 2013, and prices may not rise again until 2014.

All this means is that a buyers’ market will continue for a long time. If someone has the means and capital to invest in real estate, the next couple of years will offer unprecedented opportunity to turn a profit.