Most Owners Don’t Expect Home Values to Rise
Most U.S. home owners don’t expect any change in the value of their homes in the next year, according to a survey by Reuters and University of Michigan.
The survey, conducted in January and February, says 55 percent of American home owners expect their home value to stay the same, while 38 percent expect an increase in value. Just 7 percent expect value to decrease.
Overall, home owners’ estimates of rising values are modest – a median price increase of just 0.1 percent. That would represent a slowing in expected price appreciation from double-digit increases in the recent past, likely discouraging the typical home owner from borrowing against their home equity, the survey concluded.
