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Survey: 78% of Americans Believe Home Prices Have Bottomed

""Fannie Mae"":http://www.fanniemae.com has conducted a poll of both homeowners and renters to gauge consumers' attitudes toward housing in the U.S. The results indicate that Americans have become more cautious about buying a home, though most believe the market has bottomed out.
[IMAGE] Rents are expected to increase more than home prices, and Fannie says mortgage borrowers and underwater borrowers are less discouraged about homeownership, while delinquent borrowers and renters are more pessimistic.

Of the respondents to the ""Fannie Mae National Housing Survey"":http://www.fanniemae.com/about/housing-survey-091610.html, 47 percent believe home prices will hold steady over the next year, while 31 percent expect them to rebound.

Forty-six percent say rental prices will stay the same over the next 12 months, while 39 percent expect them to rise. Across the general population, the average expected rise in rental prices is four times that of home prices -- 3.6 percent versus 0.9 percent.

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Seventy percent of Americans think now is a good time to buy a house, compared with 64 percent in a similar survey conducted in January 2010. But 33 percent -- up from 30 percent -- of all respondents said they would be more likely to rent their next home if they were to move.

""Our survey shows that consumers see a mixed outlook for housing and homeownership,"" said Doug Duncan, Fannie Mae's chief economist and VP. ""These findings indicate a return to a more balanced and realistic approach toward housing. While this will likely weigh on the housing recovery in the near-term, it should, over time, help to build a stronger and healthier market focused on sustainable homeownership.""

Duncan continued, ""Although most Americans believe that home prices have bottomed, they are adopting a much more cautious approach toward buying. Homeowners and renters alike continue to be wary of taking on risk, and they are less confident in the long-term outlook for housing.""

A majority of Americans -- 67 percent -- continue to believe that housing is a safe investment; however, that number is down 16 percentage points from a similar survey conducted in 2003 -- the largest drop by far among all investment types tracked since then.

Fifty-four percent think it would be very difficult or somewhat difficult to get a home loan today. However, 71 percent of Americans think buying a home will be harder for the next generation.

Twenty-two percent of mortgage borrowers said they have reduced their mortgage debt significantly in the last year.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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