Survey: Americans Think Home Prices Will Rise

A survey conducted for researchers at the University of Chicago and Northwestern University found that fewer Americans feel that home prices in their area will decrease in the next year than did at the end of last year. The findings were part of the Chicago Booth/Kellogg School Financial Trust Index. In December 2008, 47% of the respondents to the survey felt home prices in their local market would decline in the next year. By March 2008, that number fell to 37% and in the most recent survey, the number was 26%. Paola Sapienza of the Kellogg School of Management at Northwestern said, "In only six months we've seen marked improvement in confidence toward home values. In fact, 75% of the people who changed their opinion during this time period now think house prices will remain stable, while the remaining fourth think that house prices will rise." The Financial Trust Index increased from 19% in the first quarter to 21% for the second quarter as the researchers found an increase in the percentage of Americans who trust their banks and bankers, from 29% to 34% during that timeframe.