Optimism about the housing market isn’t quite sweeping the
nation, but Americans remain sold on the value of home ownership at a good time
to be bullish about buying a home.
With home sales and prices still falling, the spring could
shape up as an opportune time to make a deal.
The housing downturn hasn’t shaken consumers’ resolve to
consider home ownership an integral part of an American Dream, even among home
owners with homes that have lost value.
The eighth quarterly “Allstate-National Journal
Heartland Monitor Poll: The American Dream” revealed that nearly nine out
of 10 homeowners say they would buy their same homes again.
Among those with homes with lost value, the same percentage
said they would buy their home again.
Also, seven of 10 Americans say they would advise a friend
or family member to buy a home as a long-term asset.
The spring could be a good time to take that advice.
Existing-home sales, completed transactions that include
single-family, townhomes, condominiums and co-ops, dropped 9.6 percent to a
seasonally adjusted annual rate of 4.88 million in February from 5.40 million
in January. February 2010 sales were 2.8 percent below the pace in February
2010, according to the National Association of Realtors (NAR).
The slow sales pushed the median price down to $156,100, the
lowest level since February 2002, setting the stage for spring bargains.
Some experts say the housing market is years away from a
full blown recovery and the home buyer tax credit is kaput. However,
improvements in employment and manufacturing and other economic sectors,
bargain home prices and affordable interest rates could light a fire under
buyers who’ve been sitting on the fence.
“Housing affordability conditions have been at record
levels and the economy has been improving, but home sales are being constrained
by the twin problems of unnecessarily tight credit, and a measurable level of
contract cancellations from some appraisals not supporting prices negotiated between
buyers and sellers,” said Lawrence Yun NAR chief economist.
The Allstate survey of 1,000 Americans also found.
# Buying a home was the best investment among 24 percent,
behind “investing in retirement savings” (38 percent), but ahead of
“saving money in the bank” (20 percent), and “investing in the
stock market” (6 percent).
# A majority, 58 percent of those who believe the housing
crisis will remain a serious problem would still recommend buying a home.
# Americans are evenly split on whether the federal
government should continue policies to encourage home ownership at the same
level (46 percent) or scale them back because they cost too much (46 percent).
# More than half of Americans (52 percent) blame the housing
crisis on banks and lending institutions for misleading borrowers and approving
bad loans, while 32 percent blame people who bought homes and took out
mortgages they couldn’t afford, and only 12 percent blame government policies
that encouraged too many people to try to own their own homes.
“Owning a home continues to be the bedrock of the
American Dream – even as incomes are down, jobs are scarce and families
struggle to make ends meet,” said Thomas J. Wilson , Allstate chairman,
president and chief executive officer.
“Homeownership is viewed positively by the vast
majority of Americans as both a place to raise a family and a sound
investment,” he added.
Written by Broderick Perkins
