US - The majority of potential homebuyers and sellers believe the US real estate market and property values will recover in the next two years, according to a survey conducted by Prudential Real Estate and Relocation Services.

According to the survey, nearly 68% of homebuyers and sellers believe real estate values will recover in the next year or two, up 21 percentage points from a similar survey conducted in April 2010.

The survey also found that nearly 86% of Americans believe real estate is a good investment despite the turmoil of the past few years.

Consequently, roughly 58% of respondents said they were more interested in buying real estate and were optimistic about the market due to the recovery in the economy.

The survey also revealed those who want to trade up their homes far outpaced the number of those who want to scale down. 

Of the 45% looking to trade up, 64% wanted more space, 49% a nicer house and 41% a better neighborhood. Only 21% surveyed said they were looking to scale down, while 34% said they wanted a similar home.

In addition, the majority of American consumers look at price as an important factor in their property buying decision. Nearly 74% of buyers believe many homes could meet their needs and that price is a significant factor, while 26% said they were willing to pay top price for a dwelling of their choice.

In setting the right price, however, sellers were split - with 53% wanting to price right at or slightly below market to attract more bids, and 47% wanting to price slightly higher than market and hoping to find a buyer willing to pay more.

Topics