Economic Pessimism Grows as Nation's Real Estate Slump Hits Wealthy Areas Republicans Less Upbeat About Economy and Housing Markets
October 11, 2007
Public assessments of the nation's economy have fallen to a two-year low, and the nation's economic outlook remains relatively gloomy. In particular, faced with a steady stream of negative news about the U.S. housing market, Americans are substantially less inclined than they were even a few months ago to say they expect home prices to increase over the next few years. People living in areas with the most expensive homes and middle-income Americans are particularly likely to say that future home prices will decline.
Overall, 53% of Americans think local housing prices will climb in the next few years, down from 62% in June, while the number expecting prices to fall has increased from 28% to 36%. Market predictions differ by the value of housing near where a person lives. In metropolitan areas where the median single-family home sells for $300,000 or more, nearly as many people believe prices will go down (45%) in coming years as say prices will go up (47%). By comparison, most people in metropolitan areas where home prices are lower foresee at least modest gains in housing values.
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