The majority of Americans still think real estate is the best long term financial investment to make. Since the housing peak in 2006, home prices have dropped by a third and more than a quarter of all homes are worth less money than what was borrowed to buy them. It will take time, however homes will eventually start to appreciate once again. Article resource – Most Americans still believe in real estate as an investment by MoneyBlogNewz.
More than 80 percent of Americans have confidence in housing
The majority of Americans are confident in housing investments even with the economic downturn, a survey noted. The Pew Research Center, according to Reuters, found that 81 percent of Americans felt real estate was nevertheless the best long term investment. The Social and Demographic Trends project, as part of the Pew Research Center, surveyed over 2,000 adults asking if a home was the best long term investment. 44 percent said that they “somewhat agreed” while 37 percent said they “strongly agreed” with the statement. About 23 percent of people said that if they could go back and do it again, they would not have purchased their home. Still, most people believe homes will recover in three years.
Realtors, according to MSNBC, are hoping that sales pick up during the spring and summer of 2011 and the current trend of slowing sales is reversed. The number of home sales and values may end up staying down though which realtors and real estate industry analysts are worried about considering the amount of underwater mortgages. The National Association of Realtors has high hopes. It thinks that this year alone there will be a 7.4 percent increase in home sales. The tight lending practices are making several in the real estate industry mad. They say there is no way to recuperate without this change.
People unsure over it
The housing industry is in a hard place right now. The American Dream is danger due to this. An article on the USA Today website quoted Robert Shiller, co-founder of the real estate tracking Case-Shiller Index, as saying that individuals buy houses for security or lifestyle reasons. There was another economist that talked about the return on a home. Typically, the return is around 6 percent. With all the fees and depressed prices, it may be even worse. Most people aren’t getting a return at all.