According to a recent Gallup poll, 71% of Americans believe it is a good time to buy a home. This sentiment is the strongest since August 2005. While it is interesting that this is the highest since 2005, it is not without reason. With plenty of inventory to choose from, historically low mortgage rates, tax credit incentives for first-time home buyers, excellent deals on foreclosures and short sales as banks cut bait and with the strongest Atlanta real estate selling season upon us (Spring & Summer), there is good reason for this optimistic outlook. Additionally, many will put their Atlanta homes for sale understanding they could potentially take a loss, but realizing that what they lose on this home, they could make up for significantly on the purchase of their new home.
Also in the poll and slightly in contrast, only 22% of Americans believe the price of their home will increase over the next year. We ATLiens (as part of the South) are the most confident of the group at 28% while the lowest confidence belongs to those in the Midwest (16%). Apparently there are a lot of negative vibes out in the cornfields.
- May '05: 70%
- May '06: 60%
- April '07: 52%
- April '08: 29%
- April '09: 22%
The real question is will this strong home buying sentiment actually manifest itself into more home sales in the coming months. Only time will tell...