Most See Slow Recovery for Housing Market: Survey

By Jon E. Dougherty at 9 Dec 2010

(Newsroom America) -- A new survey found that nearly three in four Americans believe it will take years for the housing market to rebound, even though the nation has seen a limited reversal of its economic fortunes over the past year.

A Rasmussen Reports poll published Thursday found that 71 percent of respondents believe the housing market will take at least three years to recover. The polling firm said the new, higher figure compares with 60 percent of respondents who felt the same way in early 2009 and 65 percent at the beginning of 2010.

The survey found that just 8 percent of respondents thought the recovery would take two years; a meager 4 percent saw it happening in the next 12 months. Seventeen percent said they were undecided.

Meanwhile, Rasmussen said, "Americans remain pessimistic about the overall economy in the short-term but are more positive about five years down the road."

The mood of respondents appears to reflect the reality of the situation within the housing market in most regions of the United States.

Newsroom America reported Thursday that the housing market is set to lose $1.7 trillion in value this year, according to a Seattle-based firm that tracks home prices.

Zillow Inc. said said declining home values have put more homeowners under water on their mortgages, meaning they owe more for their homes than they are worth. That has led to an increase in foreclosures, which has put a glut of homes on the market and has further eroded prices.

"With foreclosures near an all-time high in late 2010 and high rates of negative equity persisting, it does not appear that the first part of 2011 will bring much relief," said Stan Humphries, the firm's chief economist, in a statement. "Government incentives can only temporarily hold back the tide."

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