Americans remain highly confident about the nation's housing prospects, with more than four out of five homeowners expecting the value of their home to appreciate over the next five years, and nearly seven out of 10 calling it their most valuable investment, according to results from a new nationwide survey.
President of the National Association of Home Builders David Pressly said, "The poll clearly debunks the more sensational media reports speculating on the demise of the housing market. It is interesting to note that other polls conducted by major news organizations have come up with similar results, indicating that despite the current housing market downturn. Americans resoundingly believe that buying a home is the best investment they can ever make."
The survey of 2,000 households, including more than 1,750 registered voters, was conducted by RT Strategies between Oct. 26 to 29. The polling found that 81 percent of homeowners believe that the value of their homes will rise over the next five years. Only 13 percent felt their home would fall in value, while 4 percent expected no change and 3 percent were unsure.
Sixty-nine percent of the respondents marked their home as their most valuable investment, followed by 401(k) and other retirement accounts, which were listed by just 11 percent as their top investment.
Buying a home is the most important decision you can make, but it's a worthwhile investment, especially if you plan to live in the home for at least five years, according to Silicon Valley Association of Realtors 2006 president, John Tripp. He said advantages of owning a home include the tax benefits derived from buying a home, building wealth which comes with the long-term gain in the increase in a home's value over time, as well as the social benefits of owning your own home.
"A home should always be viewed as a long-term investment," said Tripp. "There's equity that you build when you buy a home, the tax advantages. When you own your own home, you have a stake in the community and its schools."
Real estate professionals as well as homebuilders believe the housing market is poised for solid and sustained growth in the future.
"We are in the midst of an inevitable adjustment following the housing boom of 2004-2005 when housing market activity soared to unsustainable levels," said NAHB Chief Economist David Seiders. "Housing demand should stabilize in short order and the downward adjustment to housing production should run its course by mid-2007. The market that emerges from this correction will display good balance between supply and demand and move to a healthy and sustainable trend based on solid underlying fundamentals."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.