According to a recent online survey of Americans conducted by Trulia and Harris Poll, pessimism is creeping back into the housing market, says Trulia's Ralph McLaughlin. Potential buyers want the American dream, which for most means owning a home, but there is a growing sentiment that achieving that dream will be difficult in the coming years. From a poll of more than 2,000 Americans, the real estate site found that more than one in five (22%) Americans think it will be harder to get a mortgage in 2016 than it was in 2015.
For millennials who plan to buy a home someday, nearly a third (31%) want to buy before by 2018, but jobs and down payments are the keys to turning these renters into homeowners within the next 12 months.
Trulia also put together predictions for the upcoming year:
- Housing markets in the West and Northeast that we’ve defined as the Costly Coasts will continue to cool, but will boom in the Southern and Midwestern markets we call the Bargain Belt.
- Renters may get some relief in costly metros, where multifamily construction is booming.
- Buying will remain a better deal than renting nationally, even if mortgage rates increase. But in several California markets, renting might become cheaper than buying.
- And finally, we’ve identified a list of 10 markets to watch in 2016 based on a healthy combination of affordability, job growth, and online search activity. Half of these markets are in the Bargain Belt, and so are the top 3: Grand Rapids, Mich., Charleston, S.C., and Austin, Texas.