Nearly two-thirds of Americans have a favorable perception of the U.S. housing market, up four percentage points from the first quarter, and 12 percentage points over the first quarter of 2011, the most recent Prudential Real Estate Outlook Survey found.
A spokeswoman for the real estate company said the survey was initially conducted on an annual basis. Given the changes in the marketplace, the company elected to increase the frequency of the survey to quarterly.
Meanwhile, the number of people who believe it is harder to get a mortgage in today's restrictive environment increased from the 1Q12 survey, to 65% from 58%.
"The American dream is clearly on the mend," said Earl Lee, president, Prudential Real Estate.
"Americans are feeling better about homeownership and the ongoing recovery taking place in residential real estate. Many are increasingly optimistic about their personal circumstances and, with housing affordability near all-time highs, they want to act on the opportunity."
Just under seven in 10 surveyed at the end of May believed real estate is a good investment, up six percentage points from the first quarter and 17 percentage points from 1Q11.
As rates continue to fall to historic low levels, 96% of the respondents at least "somewhat agreed" that now is a great time to buy a home. This is similar to the 1Q12 survey result.
Respondents placed a higher priority on the emotional reasons for homeownership as opposed to the financial. "Control over living space, more space for family, safer neighborhood and good place to raise a family" rated higher than "a good investment, financial security and "tax benefits."
"Normalcy is returning to the U.S. real estate market and more people are buying homes for traditional reasons—to raise a family, feel secure and build a future," said Lee. "Every last emotion is rolled up into owning a home—it's where life happens—so it's no surprise that the emotional side outweighs financial reasons for owning a home among respondents."
