A LendingTree survey [1]of more than 1,500 Americans found that 55% think their home’s value will improve this year. Just 19% think values will fall.
Of those surveyed, 26% said home values will remain the same. Sixty-eight percent of those surveyed think homeownership is a good investment, with 65% anticipating that homeownership will continue to be a good investment by 2030. Only 4% of homeowners said homeownership isn’t worthwhile.
While a positive sentiment remains about home values, 53% of respondents said housing will be less affordable over the next decade.
The most pessimistic generations on affordability are Gen Xers (53%) and baby boomers (57%). One-third of millennials believe housing will become more affordable.
The survey found one-third of those surveyed said major repairs are their top housing-related worry. Dropping home values accounted for 17%, mortgage payments increasing came in at 13%, and 8% of respondents said difficulty buying a new home was a top worry.
Eighteen percent of those surveyed voice no housing-related concerns.
Six percent of those surveyed are most worried about being unable to sell their current home and 4% are concerned about becoming underwater on their mortgage or owning more than the home is worth.
Three out of every four people surveyed said they are considered renovations over the next year and 53% were doing renovations to increase their home’s value. Twenty-one percent said they are saving up for a renovation.
While homeowners have a positive feeling about home prices, S&P CoreLogic’s Case-Schiller Index [2] reported home prices rose annually 3.8% in December 2019. This is up from the prior months’ increase of 3.5%.
Annual increases for the 10-City Composite were 2.4%, which is an increase from November 2019’s 2%, and the 20-City Composite rose 2.9% year-over-year—also an increase from the prior month’s 2.5%.
"The U.S. housing market continued its trend of stable growth in December,” said Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices. “This marks eight consecutive years of increasing housing prices (an increase which is echoed in our 10- and 20-City Composites).”