In Denial?
A nationwide telephone survey conducted by The Boston Consulting Group (BCG) found that despite turmoil in the housing markets that includes record foreclosure numbers, mortgage rate increases and home price depreciation, a majority of homeowners don’t believe there’s a real estate slump. Is this denial or just wishful thinking?
Fifty-five percent of those surveyed were confident that their homes continued to increase in value compared with a year ago. Seventy-four percent said they were confident that they could sell their home within six months at the price they think it’s worth. Unfortunately, the survey’s findings do not support the data of most home-price indices, which point to lower median single-family house prices of about two percent nationwide.
Other notable findings:
- 69 percent are likely to renovate or make some improvement in their home during the next 12 months.
- 27 percent said they are likely to be moving on to a better house sometime in the next five years.
- 52 percent said the current housing slump would end within two years.
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