Public Mood Swings to Real Estate

With the coming of spring and improving conditions for buyers, Americans are recognizing today’s market is an ideal time to buy real estate. National surveys over the past month are detecting a sea change in public attitudes towards real estate for both homeowners and investors.

An annual Gallup Poll on home buying intentions conducted in early April found that 71 percent of the nation believes this is a good time to buy a home, an 18 point increase over last year at this time and a higher percentage by far than any time since 2003.

A quarterly Associated Press-GfK Roper survey in mid-April found that real estate continues to hold a sizeable lead over the stock market as an investment option, though the stock market rose eight points from December. Most Americans still say it’s a bad time to invest in the stock market while a majority of 64 to 32 percent say it’s a good time to invest in real estate, also up eight points since December.

Both surveys were conducted following passage of the enhanced first-time homebuyer tax credit and during a time of lower interest rates, high inventories, record foreclosures and continued declines in home prices.