The level of optimism for the housing market in the U.S. for the fourth quarter of 2014 is at its highest point as it has been at any point during the recovery, according to a recent survey conducted by Trulia.
The majority of American adults surveyed for Q4 said they expect all five real estate activities – selling a home, buying a home, getting a mortgage to buy a home, getting a mortgage to refinance a home, and renting a home – to be better in 2015 than they were in 2014. According to Trulia, 36 percent of respondents said 2015 would be much better or a little better for selling a home, compared to 16 percent who said they believe the coming year will be much or a little worse. The difference of 20 percentage points between the two was the highest for any of the five categories; the percentage of respondents who answered much or a little better was higher than the percentage of those who said much or a little worse in all five categories.
Of those surveyed, 74 percent said that home ownership was part of the American Dream, tying its post-recession high set in Q4 2013 and slightly higher than the percentage who felt the same way in 2012, 2011, and 2010, according to Trulia.
Among younger adults, the percentage of those who say homeownership is part of achieving the American dream is at an all-time post-recession high, according to Trulia. Of the adults from ages 18 to 34 who were surveyed, 78 percent answered yes to the question of homeownership and the American dream. The previous high was 73 percent, set in Q4 2013, and the lowest was 65 percent set in Q3 2011. Also, 93 percent of young renters said they hope to buy a home someday, according to Trulia.
Trulia reported that while optimism is high toward the housing market, barriers remain to homeownership. While the biggest barrier to home ownership is still saving for a down payment, affordability has become a bigger concern in the last year – 32 percent of respondents said increasing home prices were the biggest barrier to owning a home, compared to just 22 percent from the same period a year ago. Poor credit and qualifying for a mortgage were also cited by respondents as obstacles to homeownership.