A recovery won’t happen in the U.S. housing market until 2014, according to a new homeowners’ survey by RealtyTrac and Trulia.com.
Pete Flint, co-founder and chief executive officer of Trulia, said most Americans had overestimated how quickly the housing market would bounce back.
The survey showed that 54% of respondents in April thought the market would recover by 2014 or later. That compares to November 2010, when 34% felt the recovery would be in 2014 or later.
“Looking at the recent double dips in home prices, I expect the rest of 2011 to be volatile for real estate,” Flint said. “On the flip side, mortgage rates won’t stay low forever and even if home prices continue to fall for a bit, now is still a good time to enter the housing market.”
Flint personally predicted it would be 18 months before seeing signs of price stability in the U.S. housing market.
The survey also found a majority of buyers expect a discount or more than 50% on the value of a foreclosed home.
“Demand remains weak, loans are increasingly difficult to qualify for, and the shadow inventory of several million distressed properties is weighing down the market,” said Rick Sharga, senior vice president of RealtyTrac.
Some 56% of renters and 47% of homeowners polled were interested in a buying a foreclosed or bank-owned property.
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