Most Americans Think Housing Market Won’t Recover Until After 2012

December 8, 2010 No Comments »

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A majority of Americans polled by real estate service Trulia don’t expect the housing market to recover until after 2012.

Another 27 percent expect things to recover in 2012, and just 10 percent see a housing recovery next year.

Just one percent think it will recover this year, and four percent think we’ve already recovered.

One in five polled believe we won’t see a recovery until 2015 or later, which may be true depending upon where you reside.

Hard-hit areas like Las Vegas and Miami may have years to go before home prices near previous highs seen in the latest housing boom.

In fact, a study conducted a while back suggested that underwater homeowners in Sin City can only look forward to dismal home equity of $1,039 by 2020.

That’s right, ten years to see positive equity of just over $1,000, clearly not enough to sell the home and walk away with a profit.

Speaking of underwater borrowers, nearly half (48 percent) of homeowners with a mortgage admitted they would consider walking away if their mortgage was underwater, up from 41 percent in the May survey.

And men (57 percent) are more likely than women (40 percent) to consider strategic default when dealing with negative equity.

If mortgage payments became unmanageable, only two-thirds of homeowners said they would consider calling their mortgage lender to seek a loan modification, with the next most popular solution having a tenant move in.

More consumers said they were at least somewhat likely to consider the purchase of a foreclosed property, up from 45 percent in May, although their expectations for a discount still seem to be running high.

Finally, half of those polled expressed that they now have less faith in mortgage lenders, banks and the government as a result of the recent robosigning mess.

Another 35 percent believe it will delay the housing market’s recovery.

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