More than half of consumers nationwide (54 percent) believe a housing recovery for the nation is unlikely until 2014 or later, according to a recent survey from real estate website Trulia and foreclosure marketplace Realty Trac.
A previous survey conducted six months ago revealed that 42 percent of Americans said they thought the market would turn around by 2012 or had already turned around. Now, only 23 percent continue to think this will happen.
"Most Americans, as our latest survey revealed, overestimated how quickly the housing market would bounce back, but when it does, it will likely be a long and gradual process," said Trulia CEO Pete Flint. "Looking at the recent double dips in home prices, I expect the rest of 2011 to be volatile for real estate."
He added: "On the flip side, mortgage rates won’t stay low forever and even if home prices continue to fall for a bit, now is still a good time to enter the housing market. In my eyes, we have another 18 months until we start to see signs of price stability in the housing market."
Consumers’ confidence has also dropped for the Obama administration’s underperforming Home Affordable Modification Program (HAMP) and the Home Affordable Foreclosure Alternatives Program (HAFA, according to a statement. Forty-five percent believe the government is not doing enough to prevent foreclosures; 17 percent said too much is being done; 16 percent said they are doing the right amount; and 22 percent are not sure.
The negative sentiment toward the government may be so high because of the widespread prevalence of distressed homeowners facing foreclosures, according to a statement. Almost one-third (30 percent) of homeowners self-reported they have or know someone who has applied for or received a loan modification, stopped paying their mortgage, foreclosed, walked away or short sold their home.
The glut of foreclosures has resulted in more than half of the nation’s renters (56 percent) and 47 percent of current homeowners reporting they are at least somewhat likely to purchase a foreclosed home. Consumers expect to pay 38 percent less for a foreclosed home than a similar home that was not in foreclosure.
