Housing analyst says “death spiral” could come to U.S. housing market
Dr. Doom may be sounding the alarms about a double dip in U.S. housing, but most Americans still aren’t buying it — at least not yet. According to a Gallup poll conducted Jan. 7-9, 67 percent of Americans believe now is a “good time” to purchase a home, down from 72 percent who felt that way in April 2010 and 71 percent in April 2009. Just one in four believe home prices in their communities will experience a decline this year, though 42 percent said in response to a separate question that they are worried that their own homes will lose value. “Potential homebuyers might want to avoid thinking about a home purchase right now as an investment,” said Dennis Jacobe, chief economist for Gallup, citing uncertainties in the market. “Because both the U.S. housing finance system and, most likely, the structure of the housing market are likely to change significantly during the years ahead, it may at best be a ‘good time’ for Americans to buy a home as a place to live.” TRD
