August 22, 2011 (Jeff Alan)
American’s confidence in seeing the value of their homes going up in the next year increased slightly last month with 13 percent of the homeowners surveyed expecting their homes to increase in value over the next 12 months according to the latest Rasmussen Reports poll.
Over the last year, the survey has registered results that ranged from 11 percent to 31 percent, with July’s poll showing that 11 percent of the homeowners believed the value of their home would increase. Last months report was the lowest percentage ever recorded.
Just about half of the homeowners, 48 percent, believed their homes would be worth about the same amount over the next 12 months and 35 percent of the homeowners expect their homes to be worth less in a year from now. In July’s report, 33 percent of the homeowners felt their homes would be worth less.
For the second month in a row, homeowners increasingly believed that their home values would be going up in the long term. Asked if they thought their home’s value would be higher in five years, 40 percent believed that their home’s value would be higher. That was up from 37 percent in last month’s poll. A positive trend but still below the expectations of just a few short years ago.
By comparison, in 2008 after the Wall Street financial meltdown, 59 percent believed their home would be worth more in five years and throughout 2010 between 41 percent and 55 percent of homeowners believed their homes would be worth more in five years.
Thirty-two percent of the homeowners believed their home’s value would be the same in five years, down from 35 percent in July’s poll, while 20 percent expected their homes to be worth less over the next five years, unchanged from July’s poll.
A majority of homeowners, 53 percent, believed their home was worth more than what they bought it for, while 17 percent thought their home was about the same as what they paid for it. Twenty-five percent said their home was worth less than what they paid for it.
Rasmussen also found that 62 percent of Americans believe they will be paying higher interest rates over the next 12 months. That was up from 57 percent in July’s report. Twenty-four percent believed they would be paying about the same interest rates, down from 26 percent last month, and seven percent expected to be paying lower interest rates in a year from now.
Tags: Rasmussen Reports, homeowner’s confidence, home values, increased value, worth less, pessimism, interest rates