Despite the drubbing home values have taken, a new poll shows a large majority of Americans say owning a house is still important.
A year ago, 28 percent of those polled for the online real estate firm Trulia said they never wanted to own a home. That dropped to 22 percent this year, leaving three out of every four Americans saying homeownership is an important part of successful living, according to Trulia's American Dream survey.
Company economist Jed Kolko said the uptick in the U.S. economy has boosted optimism about home prices and ownership, perhaps more than warranted.
"Optimism is outpacing reality," Kolko said.
Two-thirds of Americans believe home prices will rise this year, and 58 percent believe prices will return to their pre-housing peak within 10 years, the poll of more than 4,500 people said.
"And that is what is scary," Kolko said. "We know those peaks were unsustainable. ... That is the kind of optimism that led us to the last housing bubble and ... could lead us into the next housing bubble years from now."
The growth in the economy and recent reports of stabilizing home prices and sales boosted not only buyers' hopes, but expectations. The number of people who said their ideal home would be more than 3,200 square feet doubled from 6 percent to 12 percent between 2011 and 2012. Those who want a home between 2,600 and 3,200 square feet jumped from 12 percent to 16 percent.
The survey, conducted online in May and June by Harris Interactive, confirmed some earlier polling by Fannie Mae, the quasi-governmental mortgage loan facilitator.
Doug Duncan, Fannie Mae's chief economist, told The Atlanta Journal Constitution the desire to own a home remains strong, but the recession has changed the reasons why. During the run-up to the housing bubble, people polled by Fannie Mae listed financial benefits such as price appreciation and tax benefits as chief reasons to buy.
Today's owners list the most important aspects of ownership as living in a safe neighborhood or in a good school zone.
"There's nothing financial in their top five reasons to own a home," Duncan said. "There has been a big shift in those attitudes."
Fannie Mae's polling also shows that the most recent news of a slowing economy has flattened optimism.
Kolko said the housing market is improving, but there are potential problems yet to be faced, such as uncertainty created by the federal budget battles or the European financial crisis. If the situation holds steady, he predicts the housing market will return to a new normal, lower than the peak of the market, by 2016.
About the Author
