Prudential Real Estate released results of its fourth quarter Consumer Outlook Survey. The survey showed that consumers perceive residential real estate favorably, and more are committed to buying and selling homes in 2014 than in the previous year.
78 percent of respondents showed favorability towards real estate, a five point jump from the previous quarter and 15 points higher from the end of 2012.
63 percent of survey participants indicated they were more committed to buying and selling homes in 2014.
“Consumers understand that the U.S. economy and residential real estate continue moving in positive directions,” said Earl Lee, CEO of HSF Affiliates. “Accordingly, they’re feeling much better about their personal situations and want to take advantage of attractive home prices in many markets and interest rates that remain low by historical standards.”
The government sequestration and rising interest rates are two factors that negatively impacted consumer's personal finance decisions in 2013. However, 65 percent are optimistic about the 2014 housing market.
The survey notes that homeownership remains a personal decision: 72 percent of respondents said that finding the right home and community are crucial to their family's happiness.
Caution remains, however. Two-thirds of respondents expect to face more competition in the market, and only 39 percent believe it will be easier to secure a mortgage loan in 2014.