Views of Home Buying Climate Slightly Less Positive in U.S.

Americans remain positive about home buying, but are slightly less optimistic than they were in 2013 and 2014.

Presently, 69% believe it is a good time to buy a house, down from an average 74% during the two years prior, but similar to what Gallup measured from 2009-2012.

Americans are more confident about purchasing a house now than they were between 2006 (when home values stopped rising and interest rates increased) and 2008 (after the housing bubble burst). In those years, just over half endorsed home buying.

The most recent results are based on Gallup’s annual economy and Personal Finance survey.

The slightly less positive views of buying a home may have been influenced by lackluster home sales earlier this year, as many parts of the country experienced unusually cold weather.

The newest data on home sales, released last week, show there was a surge in sales of existing homes in March.

Since 1978, Americans have generally been optimistic about the home-buying climate, with majorities saying it is a good time to buy even in times when the economy struggles, including after the housing bubble burst.

Thus, the measure likely reflects the value Americans put on homeownership in addition to their views of the prevailing housing market.

Although Americans’ perceptions of real estate as the best long-term investment sank considerably during the recent recession, prior to that it was the clear leader of four possible choices, and more recently, it has returned to the top spot.

Confidence that it is a good time to buy a home has dropped the most since 2013-2014 among Americans residing in the Western part of the country, with 64% now saying this, down from an average 75%.

There were smaller drops among those living in the East and South, while views in the Midwest are steady if not up slightly.

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