Views of the U.S. real estate market have reached new depths

About 21% of U.S. adults say now is a good time to buy a home, the lowest in the history of Gallup polling. The previous low was recorded last year. In 2022 and 2023, those are the only periods when less than half of Americans thought the housing market was favorable for buyers. The survey was conducted April 3 through April 25.

Now 78% of those surveyed believe this is not a good time to buy a home. In 1978, 53% of Americans thought it was a good time to buy a home, and 13 years later, in 1991, the figure was 67%. A record high of 81% was recorded in 2003, when rising real estate prices and high property values created a bubble in the market.''Over the next few years, as home prices continued to rise, Americans became less optimistic about market conditions, with between 52% and 58% of respondents believing it was a good time to buy between 2006 and 2008. After the bursting of the real estate bubble in the first half of 2007, home prices began to fall over the next two years and remained stable until 2011.

With lower prices and low interest rates, overall public opinion of buying a home improved to 71% in 2009 and has remained at 60-70% since 2017. In 2020, at the start of the coronavirus pandemic, when economic activity was limited in many parts of the country, only 50% thought it was a good time to buy a home, which was''record low.

Home prices have skyrocketed over the past two years and the Federal Reserve has raised interest rates to fight inflation, making housing less affordable for many Americans and affecting their opinion of the real estate market. Demand in the real estate market is falling and this is seen across all groups, including region, community type, ownership status, income, education and political affiliation.

In addition, the number of Americans who expect home prices in their area to rise in the coming year is declining. Currently, 56% of respondents think so, while 25% believe prices will stay the same and 19% predict a decline.'''Expectations for house prices remain relatively high, but lower than in previous years. In 2020, 40% expected prices to rise, and since the housing market crisis in 2008 and 2009 this figure has been 38% and 34% respectively.

Residents in Midwest and rural areas are the least likely to believe home values will rise in the coming year. 45% of Midwest residents expect prices to rise, compared to 55%, 61% and 62% in Western States, Southern States and Eastern States, respectively. Also, residents of cities and suburbs are more likely to predict price increases than residents of urban areas.

The overall trend shows a decline in the number of Americans expecting home values to rise in the coming year. Residents of Midwest, Western states and rural''locales showed the largest decline in this rate since 2022, more than 21%. Southern states, cities and suburbs showed small declines, and there was no change among Easterners.

The bottom line is that fewer Americans believe now is a good time to buy a home. The pessimistic attitude toward home buying reflects high prices and interest rates that make mortgage payments less affordable. However, Americans still believe real estate is the best option for long-term investments. While 19% of respondents expect home prices to decline in the coming year, they are still less likely to predict an increase. Stabilizing or declining home prices could make housing more affordable for Americans, especially''if interest rates also stabilize or decline.