Most Still See 'Buyers Market' in Housing

(Newsroom America) -- A new survey found that two-thirds of Americans believe there is a "buyer's market" in housing right now, meaning they believe now is a good time to purchase a home.

Gallup, in a new poll published Monday, said the 67 percent of Americans who view the market favorably is similar to the 72 percent of April 2010 and the 71 percent of April 2009.

The polling firm said the most recent data "suggest Americans are holding on to perceptions of a buyer's market despite the challenges of securing financing and observers' concerns about the potential for a housing 'double-dip.'"

The survey said that overall, now remains a good time to purchase, considering that interest rates remain at historic lows and home prices have fallen significantly, meaning there are bargains to be had.

"There is a huge supply of unsold homes and more to come as home foreclosures hit record highs -- suggesting that the bargains could get even better as the year unfolds," the survey said.

Still, Gallup said, figures indicate that Americans don't expect housing prices to recover soon.

"...[T]he sharp decline in housing price expectations from 2007 to 2008 may have been a good indication that many Americans saw the now-infamous housing bubble forming in their local markets before many observers recognized it on the national scene," said Gallup.

"In this regard, Americans' subdued expectations on whether local-market housing prices will increase this year might indicate that housing still has a way to go before it recovers."

The survey said today's housing finance market is "broken" and that it favors cash buyers and buyers with perfect credit. Also, the uncertainty of how the system will repair itself in the coming years makes buying homes for investment purposes risky, the survey concluded.

"Because both the U.S. housing finance system and, most likely, the structure of the housing market are likely to change significantly during the years ahead, it may at best be a 'good time' for Americans to buy a home as a place to live," said Gallup.

© 2010 Newsroom America.

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