The FINANCIAL -- Perceptions of home values among homeowners has improved little over the
past month, though more than half still believe their home is worth
more than when they bought it.
The latest Rasmussen Reports national telephone survey of Adult Homeowners shows that just 13% expect their home’s value to go up over the next year. While that’s up slightly from last month’s low of 11%, it remains below results found over the past two years. Prior to July, the number who expected their home values to rise during the next year ranged from 15% to 31%.
Thirty-five percent (35%) expect their home’s value to go down during the next year, just two points below the all-time high. Forty-eight percent (48%) expect their home to be worth about the same as it does today.
Forty percent (40%) now expect the value of their home to go up in the next five years, a finding that has ranged from 35% to 55%. One in five homeowners (20%) expects their home’s value to go down in that time for the second straight survey. Thirty-two percent (32%) of homeowners expect values to remain about the same during that time.
Still, a majority of homeowners (53%) say their home is worth more now than when they bought it. That’s up only slightly from 51% in June, but is down from 58% in April. One in four homeowners (25%) says his or her home is worth less than when they bought it, while 17% say the value is about the same.
The survey of 703 Homeowners was conducted on August 14-15, 2011 by Rasmussen Reports. The margin of sampling error is +/- 4 percentage points with a 95% level of confidence.
Eighty-one percent (81%) are at least somewhat confident they know how much their home is worth in today’s market, including 48% who are Very Confident. Just 15% lack confidence they know what their home is worth. Overall confidence is up slightly from surveys conducted in June and April.
Most homeowners (79%) bought their home more than five years ago, while another 17% bought there home one to five years ago. Just two percent (2%) bought their home within the last year.
Investors are a bit more confident than non-investors when it comes to their home values in one and five years.
Those who bought their homes three years ago or longer tend to think their home’s values will remain about the same in one and five years, while those who have bought one or two years ago are less optimistic.
More Americans than ever predict they will be paying higher interest rates a year from now, despite the fact that most say they’re paying about the same in interest as they were last year.
Just 31% are at least somewhat confident that the Fed will be able to keep inflation under control and interest rates down, the lowest level of confidence to date.
Confidence among Americans in the stability of the nation’s banking industry has hit rock bottom.
The COUNTRY Financial Security Index® dropped 1.3 points to 62.4 in August, the lowest reading in the survey's history.
www.rasmussenreports.com
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