Friday, March 25, 2011

Housing Market On Comeback Trail, Survey Insists

Wanna buy a house? Start with this one. It's mine.^
Those of us with a house for sale in a market that just set a record on the low end for sales are glad to hear about the Prudential Real Estate survey that tells us the end may be near. And we're not talking about dying.

Nearly two thirds of those polled--both buyers and sellers of homes--say they think both the market and property values will recover in the next year or two. That's up nearly 20 percent over April of 2010.

Here's the press release, picked up past the lead, which I just told you:

This exceeds the 47 percent of Americans who expected house prices would rise in a similar survey conducted in April 2010, underscoring a more bullish outlook for the real estate market today. In addition, 86 percent of Americans believe real estate is a good investment despite the market volatility of the past few years.

The Prudential Real Estate Outlook Survey of 1,253 Americans between the ages of 25-64 in the market for buying a home was conducted Jan. 20-27, 2011. The national survey reveals that six in 10 respondents are more interested in buying real estate (58 percent) and are optimistic about buying given the momentum of the economic recovery (59 percent). It also shows that although the price of many Americans’ homes declined during the recession, 89 percent recognize they can also buy a new house at a lower price.

Those on the fence about buying cited uncertainty about selling an existing home (77 percent), concern about getting a fair price for the home (67 percent) and emotions (58 percent) as factors. For those who have sold homes in the past year, despite the down market 78 percent report that they were satisfied with the sale.

The survey highlighted Americans’ interest in trading up their homes. Of the 45 percent looking to trade up, 64 percent wanted more space or property, 49 percent a nicer house and 41 percent a better neighborhood. Only 21 percent surveyed said they were looking to scale down, and 34 percent said that they wanted a similar home.

The survey highlighted the importance of getting the right price in today’s market —74 percent of buyers believe that many homes could meet their needs and that price is a significant differentiator, while 26 percent stated that they were willing to pay top of market for a home that specifically suits their needs. In setting the right price, however, sellers were split—with 53 percent wanting to price right at or slightly below market to attract more bids and 47 percent wanting to price slightly higher than market and hoping to find a buyer willing to pay more.


  1. Dan, I feel for you, having your home on the market with the market being what it is at present. So often, sellers want to blame their agent for their home not selling, when truly, the seller and and the agent are at the mercy of the market.

    My question is, is this survey by Prudential a national one or one based on local criteria? My guess is national...and every market is different and I really wish folks would pay more attention to what's going on locally and leave the national hype out of the picture.

    Yes, I couldn't agree more that real estate is a good investment and yes, the market will recover. Most everything in life is cyclical; real estate is no different, and we will see a seller's market just may not be soon enough for some folks.

    The 47% of sellers who are willing to overprice their homes hoping to find a buyer willing to pay that price are kidding themselves. They are chasing the market and will spending more in carrying costs keeping their homes and will end up taking less than they would have had they priced it right in the beginning. The longer a home is on the market, the less it is worth. A home has its most value the day it hits the market.

    The 53% willing to price their homes slightly below market are the ones who will sell. They are the sellers who are allowing the market to chase them, and will be the ones who get the offers resulting in a sale.

    I do agree with the poll, that it will be another couple of years before we see stabilization in sales and prices.

    Hope yours sells soon!

  2. Kathy:
    This is a national survey. Our house is priced at market (or maybe slightly below) and is a good house for the right family, I think. It served us well, but it far too large for Christina to stay in by herself. The neighborhood is worth as much as the house and our next-door neighbor on Belleville is worth $40,000 by himself, I'd estimate, but we can't charge for that and we can't even mention it to prospective buyers. There's so much more than the house to a home and I am not sure that gets the emphasis it needs.