WASHINGTON, April 14, 2008
Poll: Most Of U.S. Down On Housing Market
60 Percent Say They Definitely Won't Buy A Home In Next Two Years
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(AP / file)
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In a vivid sketch of how the sputtering real estate market is causing distress throughout the country, the Associated Press-AOL Money & Finance poll found that more than a quarter of homeowners worry their home will lose value over the next two years. Fully one in seven mortgage holders fear they won't be able to make their monthly payments on time over the next six months.
"This is a great time to buy, but not necessarily to sell," said Robert Jackson, who lives in a two-bedroom house in Ferguson, Mo., with his wife and four young children. He said he would love to purchase a larger home, but can't because even if he found a buyer, he would probably lose thousands on his house, which he bought less than two years ago.
"We're just going to have to slap a Band-Aid on it and stay here until the market gets a little bit better," Jackson, 30, said in a follow-up interview.
Jackson is not alone. Sixty percent said they definitely won't buy a home in the next two years, up from 53 percent who said so in an AP-AOL poll in September 2006. At the same time, just 11 percent are certain or very likely to buy soon, down from 15 percent two years ago.
The growing reluctance to dip into the housing market seems to stem partly from worry that housing prices will continue falling - good if you're buying a house but bad if you have to sell one.
The number envisioning falling prices in their area has grown to one in four, while four in 10 think prices will rise, a decrease from two years ago. Expectations for rising prices are highest in the South, with Westerners likeliest to predict they will drop.
Underscoring the public's unsettled feelings, the number saying local housing prices are about right has fallen to 35 percent. Half say homes are overpriced - especially in the Northeast - while those saying housing is underpriced have doubled to one in 10, particularly Midwesterners.
Some pockets buck regional trends. Laurie Jensen, a single mother of three, struggles to make payments on her home in Whitehall, Mont., by working as a seasonal road construction flagger and at times collecting unemployment. She said she'd like to move outside of town, but the area is popular and prices have surged.
"Things are pretty crazy," she said. "Places I don't consider that great are really expensive."
One in 10 have adjustable rate mortgages, half of the number who said so two years ago. These mortgages generally start at a low interest rate and are later adjusted to market conditions - which has often meant steep, unaffordable boosts that have forced many to refinance or even lose their homes.
Daniel Gallego, a warehouse worker in Stockton, Calif., said he may have to sell his home at a big loss. He said rising gasoline and other costs have made his adjustable rate mortgage unaffordable. Because he doesn't expect his home's value to recover soon, he said he may be better off moving now, before his rates rise.
"We may have to move in with my wife's parents or my parents," said Gallego, 30, who has two young children. "I could pay off some debt, then we could rent, and maybe buy another house in a few years."
The public anxiety is in reaction to an economy that is veering toward recession and losing jobs even as the housing market sputters badly. Foreclosures have soared to record highs, mortgage rates have increased, sales of existing and new homes have fallen and home values have dropped.
Gus Faucher, director of macroeconomics for Moody's Economy.com, a consulting firm, estimated that 9 million homeowners owe more on their home than it's worth. He said his company believes home sales are at or near bottom and home values will continue to fall until early next year.
Even so, he said, many people bought their homes before the run-up in values that started around 2001 and remain in good shape.
"So the value of your house goes down temporarily," he said. Unless the homeowner must sell now or can't afford the payments, "that doesn't have that much of an impact."
The poll also found:
The AP-AOL Money & Finance poll was conducted from March 24-April 3 by Abt SRBI Inc. It involved telephone interviews with 1,002 adults nationwide, for whom the margin of sampling error is plus or minus 3.1 percentage points.
Included were interviews with 769 homeowners, for whom the sampling margin of error is plus or minus 3.5 points. The margin of sampling error for other subgroups was larger.
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Add a Comment See all 33 Comments
- this is more important to debate, than this s/h/i/t/
if it aint MR. POTATOHEAD, LOOKS PRITTY SCARED DOENT HE. ITS FUNNY TO HAVE THIS INSIDER OF WALLSTREET HAVE SO MUCH POWER..
LISTEN IF THEY ( CONGRESS) WOULD DO THERE JOBS WE WOULDN''''''''''''''''T BE IN THIS MESS.
ANYONE THAT TOOK OUT LOANS FROM 2000 TO 2007
REGARDLESS OF WHAT THERE CREDIT LOOKS LIKE RIGHT NOW, BECAUSE OF THIS MESS MOST HAVE LOST THEIR GOOD RATING.
THEY NEED TO COME OUT AND TELL ALL MORTGAGE COMPANYS
TO RE-FI EVERYONE NOW. NO EXCEPTION IF THEY HAVE A
MORTGAGE THAN TAKE 60% OFF THE BALLANCE AND RE-FI THEM AT 1 PERCENT OVER PRIME AND STOP ALL THE BLEEDING FOR ONCE..THAT IS ALL THAT HAS TO BE DONE, SIMPLE,FAST,AND IT WOULD STOP ALL FORCLOSEINGS,BURNINGS OF HOMES,AND STOP 10''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''S OF MILLIONS FROM BEING ON THE STREET..
THIS IS MORE INPORTANT, THAN THIS ***.
OR HOW ABOUT REPORTING THAT WE THE PEOPLE WANT TO KNOW THIS FROM CLINTON AND MCCAIN. WHAT DO YOU WANT TO SAY TO THE 374,298 AMERICANS DEAD,HURT,MAIMED IN THIS WAR YOU SUPPOTED FROM THE START..HOW ABOUT ASKING THEM THIS
TIME TO MARCH DOWN AND TAKE THEM OUT.. - Reply to this comment
- The housing market has been a ripoff for years. Overinflated prices based on dishonest estimates paid for by greedy mortgage bankers. Let them BURN!
- Reply to this comment
- mcv57
sad huh. - Reply to this comment
- Posted by mandylou4u
Today''s yippies are turbo charged coke users - following the leadership of the White House. - Reply to this comment
- I think our government was trying to find out just how brain dead the American public was when they started letting anybody get a loan for a home. People try to keep up so much that they go way over their means and get mad at the loan company when they can''t pay. It''s not the loan companies falt. If your an adult, you should know how much money you have to spend on a home or anything for that matter. I can''t feel sorry for these folks in the million dollar homes going down the tube. They also drive expensive cars and wear expensive close. God forbid you don''t have everything your neighbor does...
- Reply to this comment
- I saw this BS back in the 80s (after reading Casey Douglas book). Real Estate is rip-off (use car) business where many new home contractors are relatives of the Ford Motor Co. The whole American Home Industry is most corrupt business in the country, next to the Automotive Industry. Oil seems to got us all by the balls, but screw these greedy real estate companies.
Get real, a Quarter of a Million dollars for a 3 bedroom house . . . get-the-freak away from me. You homeowner should walk away, this is the biggest rip-off in the history of the world. - Reply to this comment
- OK then the current crises was caused by the REP in an attempt to open up the "American Dream" to everyone, even if they coundn''''''''t afford the payments. The CONS''''''''s took a c**p shot and now we all loss!!!!
The fact is people were given loans they could not afford, in the hopes they could own a home.
After obsorbing the loss, we have to move on, thats the hard part.....how and in what direction.
and with WHO!!!!!!! sad bunch of choices!!!! - Reply to this comment
- Neoconism said:
"All that now ails the US economy has been caused by the deregulation of Corporate America, the trademark policies of the GOP Congress of 1995-2006."
If the Republicans had control of the congress in that time frame, I stand corrected !!!!
All is a strong word to use!! The fact is, we are in financial DOO DOO, and the craziness won''t allow recovery. - Reply to this comment
- Posted by RGMiron
posted by neoconism:
"All that now ails the US economy has been caused by the deregulation of Corporate America, the trademark policies of the GOP Congress of 1995-2006."
Wrong, the current crises was caused by the DEMS in an attempt to open up the "American Dream" to everyone, even if they coundn''''''''t afford the payments. The LIB''''''''s took a *** shot and now we all loss!!!!
Posted by RGMiron at 03:43 PM : Apr 14, 2008
Sorry, neoconism:
You are right. I goofed.
Posted by r9119111 at 04:06 PM : Apr 14, 2008 - Reply to this comment
- posted by neoconism:
"All that now ails the US economy has been caused by the deregulation of Corporate America, the trademark policies of the GOP Congress of 1995-2006."
Wrong, the current crises was caused by the DEMS in an attempt to open up the "American Dream" to everyone, even if they coundn''''t afford the payments. The LIB''''s took a *** shot and now we all loss!!!!
neoconism:
You are wrong. - Reply to this comment
- Hogwash to all of it. If people can''t be smart enough to get a loan with a fixed interest rate, then am I and the rest of the world supposed to feel bad when the payments baloon? If it''s the only loan you could get at the time because of your credit, then you should have waited until you fixed your freaking credit to buy. Radical idea in this country, I know, but it''s called COMMON SENSE. If you got the variable loan because you thought it was a good idea, then it sucks to be you. Deal with it.
- Reply to this comment
- posted by neoconism:
"All that now ails the US economy has been caused by the deregulation of Corporate America, the trademark policies of the GOP Congress of 1995-2006."
Wrong, the current crises was caused by the DEMS in an attempt to open up the "American Dream" to everyone, even if they coundn''t afford the payments. The LIB''s took a *** shot and now we all loss!!!! - Reply to this comment
- forthepeopl1:
Read how bullyforhim describes what happened. It puts it in a nut shell.
The war in Iraq didn''t cause the meltdown in our economy, banking policy did.
I''m a vet too, I remember what it was like to return home, it was hard to adjust. I hope your # is high because returning soldiers are seeking counsel.
Vietnam war was not worth the life of one of my friends. It''s looking like Iraq may turn out the same!! What another, sh*ty War!!! What A Loss, we will never fully know the cost. some of Our best and Brightest will not return! - Reply to this comment
- thats 374,298 DEAD AMERICANS OR HURT AND MENTALY ,IN CAPABLE OF WORKING ANYMORE.
374,298 AMERICANS, SONS,DAUGHTER,WIFES,HUSBANDS,THIS IS WHAT I CALL TREASONIST, WHY, BECAUSE IRAQ HAD NOTHING TO DO WITH 9-11 AND ONE OF THE DECIDER TO GO IN HAS JUST DID A BOOK EXPLAINING THIS..
AMERICANS DONT INVADE JUST BECAUSE WE THINK SOMETHING MIGHT HAPPEN DOWN THE ROAD..ITS NOT HUMAN,AND CONSTITUTIONAL.. - Reply to this comment
- HAVE YOU HURD THIS RGMiron, in any news wires,show,any news station on tv..
LISTEN IF THEY ( CONGRESS) WOULD DO THERE JOBS WE WOULDN''''''''''''''''''''''''''''''''T BE IN THIS MESS.
ANYONE THAT TOOK OUT LOANS FROM 2000 TO 2007
REGARDLESS OF WHAT THERE CREDIT LOOKS LIKE RIGHT NOW, BECAUSE OF THIS MESS MOST HAVE LOST THEIR GOOD RATING.
THEY NEED TO COME OUT AND TELL ALL MORTGAGE COMPANYS
TO RE-FI EVERYONE NOW. NO EXCEPTION IF THEY HAVE A
MORTGAGE THAN TAKE 60% OFF THE BALLANCE AND RE-FI THEM AT 1 PERCENT OVER PRIME AND STOP ALL THE BLEEDING FOR ONCE..THAT IS ALL THAT HAS TO BE DONE, SIMPLE,FAST,AND IT WOULD STOP ALL FORCLOSEINGS,BURNINGS OF HOMES,AND STOP 10''''''''''''''''''''''''''''''''S OF MILLIONS FROM BEING ON THE STREET..
THIS IS MORE INPORTANT, THAN THIS ***.
OR HOW ABOUT REPORTING THAT WE THE PEOPLE WANT TO KNOW THIS FROM CLINTON AND MCCAIN. WHAT DO YOU WANT TO SAY TO THE 374,298 AMERICANS DEAD,HURT,MAIMED IN THIS WAR YOU SUPPOTED FROM THE START..HOW ABOUT ASKING THEM THIS - Reply to this comment
- RGMiron, THANKS, BUT ITS NOT THAT I DONT LOVE AMERICA,I DO AND I AM A VET, I JUST KNOW WHAT THIS GOVERMENT WILL DO IF WE DONT STAND UP FOR HER( LADY LIBERTY) OUR COUNTRY. SHE CANT DO IT ON HER OWN. WE THE PEOPLE HAVE T STAND UP AND FIGHT FOR HER. EVEN IF IT MEANS WE THE PEOPLE HAVE TO FIGHT OUR OWN GOVERMENT. OUR CONSTITUTION SAY WE CAN.
AND UNTIL AMERICANS STOP BUYING THIS JUNK FROM CHINA AND OTHER PLACE WE WILL NOT SEE CONGRESS DOING ANYTHING TO HELP US AMERICANS, UNTIL WE STOP PAYING AND GIVENING THEM OUR TAX DOLLARS FOR A YEAR, PEOPLE NEED TO TAKE HOME ALL THEY CAN RIGHT NOW, SO JUST ADD DEPENDENT SO NO TAXES COMES OUT DURING THE WEEK.
MAYBE CONGRESS WILL SEE THAT WITHOUT US WORKING AND PAYING TAXES THEY DONT HAVE ANOUGH MONEY GOING INTO THE GOVERMENT TO PAY FOR THIS ILLEIGAL WAR OF BUSHES AND HIS CRIME FAMILY.
IT IS ONLY COMMON SENSE..JUST THINK ABOUT IT.. - Reply to this comment
- forthepeopl1:
I''m sorry, I usually do not read your posts because they are so ratical and off the wall negative to America, but this time, times are so FUBAR, you may be right!!!!
It will never happen though, The major loses would have to be absorbed by the PIGMEN. Never happen, even if Congress (and they are some of the PIGMEN) acted!!!
Now they are telling the people that if they walk away from their mortgages, No new home loans for 7 years and credit report will hurt future employment oppertunities. The banks are not only NOT GOING TO HELP THE PEOPLE, they are threating them if they don''t remain debt slaves to them!!!
From what I see, the top 5% are going to try and get every dollar it can out of the 95%.
IT"S FUBAR!!! - Reply to this comment
- LISTEN IF THEY ( CONGRESS) WOULD DO THERE JOBS WE WOULDN''''T BE IN THIS MESS.
ANYONE THAT TOOK OUT LOANS FROM 2000 TO 2007
REGARDLESS OF WHAT THERE CREDIT LOOKS LIKE RIGHT NOW, BECAUSE OF THIS MESS MOST HAVE LOST THEIR GOOD RATING.
THEY NEED TO COME OUT AND TELL ALL MORTGAGE COMPANYS
TO RE-FI EVERYONE NOW. NO EXCEPTION IF THEY HAVE A
MORTGAGE THAN TAKE 60% OFF THE BALLANCE AND RE-FI THEM AT 1 PERCENT OVER PRIME AND STOP ALL THE BLEEDING FOR ONCE..THAT IS ALL THAT HAS TO BE DONE, SIMPLE,FAST,AND IT WOULD STOP ALL FORCLOSEINGS,BURNINGS OF HOMES,AND STOP 10''''S OF MILLIONS FROM BEING ON THE STREET.. - Reply to this comment
- LISTEN IF THEY ( CONGRESS) WOULD DO THERE JOBS WE WOULDN''T BE IN THIS MESS.
THEY NEED TO COME OUT AND TELL ALL MORTGAGE COMPANYS TO RE-FI EVERYONE NOW. NO EXCEPTION IF THEY HAVE A MORTGAGE THAN TAKE 60% OFF THE BALLANCE AND RE-FI THEM AT 1 PERCENT OVER PRIME AND STOP ALL THE BLEEDING FOR ONCE..THAT IS ALL THAT HAS TO BE DONE, SIMPLE,FAST,AND IT WOULD STOP ALL FORCLOSEINGS,BURNINGS OF HOMES,AND STOP 10''S OF MILLIONS FROM BEING ON THE STREET.. - Reply to this comment
- What Thompson and his fellow Wachovia executives seem to be preparing for is further weakness in the U.S. economy and rising loan losses, driven in large part by its mortgage portfolio.
Don Truslow, Wachovia''s chief risk officer, said the company expected home prices to continue to fall through 2008 before finally hitting bottom sometime in the middle of 2009.
AND THE REST OF THE BANKS AND WORD IS GETTING READY FOR THE US TO TELL ALL. ITS NOT OVER UNTIL BIG FAT LADY LIBERTY SINGS AND SHE WILL BE SINGING REAL SOON. - Reply to this comment
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