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Fifty-eight percent of more than 2,000 adults surveyed say they believe their local home prices will return to previous housing bubble-level peaks within the next 10 years. (AP photo)

Americans too optimistic about recovery, Trulia reports

June 24, 2012 @ 2:19 pm (Updated: 6:36 am - 6/25/12 )

Americans are feeling more positive about the direction of the housing market, and a new survey conducted by Trulia suggests that they may actually be getting too optimistic with their expectations recently.

Fifty-eight percent of more than 2,000 adults surveyed say they believe their local home prices will return to previous housing bubble-level peaks within the next 10 years, according to Trulia's latest American Dream survey. This holds true for even hard-hit metro areas that saw home prices plummet, such as Detroit and Las Vegas.

"In metros where prices skyrocketed during the bubble and then plummeted, today's prices are a lot closer to 'normal' than those bubble highs were," said Jed Kolko, Trulia's chief economist, about the survey's findings. "Perhaps residents in metros with huge price drops are encouraged by all of the search activity in those areas: Far more searchers [on Trulia] are looking for homes in places that had bigger price declines than the other way around."

The survey found that Americans also are looking for bigger homes, possibly reversing a downsizing trend that had taken hold over the past few years. Twenty-seven percent of those surveyed say their ideal home size is more than 2,600 square feet, which is up from 17 percent in 2011. What's more, 11 percent of those surveyed say they want a home that is 3,200 square feet or more, compared to 6 percent who said that last year.

While Americans say they want a bigger home, they may have a tough time getting one. According to the survey, the majority of the inventory of existing homes for-sale is smaller than what most people say their ideal home size is.

Besides supersizing their homes, those surveyed also showed an increased appetite for amenities. Here's what they reported wanting the most:

63 percent want a master bathroom
56 percent want a walk-in closet
50 percent want a gourmet kitchen

Those who want to buy a home say what's holding them back is getting enough money for a down payment and poor credit history. About one-fourth expressed doubts over whether they could even qualify for a mortgage today.

So "while some optimism is necessary for the housing market to recover, the pendulum may have swung a little too far," Kolko wrote about the survey. "Too much optimism would get us back to a bubble."

Related:
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Comments (20)


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  • messiah101 wrote...
    Hopefully tighter lending rules
    June 25, 2012 8:11 am
    Will make a Real Estate bubble harder to achieve.Keeping prices low so more people can buy a Home should be the goal.Its interesting to watch the Real Estate shows and see the entitlement thinking that buyers have.They believe that Stainless steel and Granite,hardwood floors are a requirement along with 4+ bedrooms.I remember my parents being thrilled with Formica and carpet,and everyone in the family shared 1 bathroom. Inconvenient? Yes,affordable Yes.Also where I lived most everyone had a front porch which worked as a social center for the neighborhood of course neighborhoods were different in the 50s as lots of kids were around and everywhere you went you saw children on the streets or in the playground playing,unsupervised.You don't see that anymore
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  • maplefish wrote...
    Messiah
    June 25, 2012 11:17 am
    That is how we got into this mess in the first place. Bill Clinton, Barney Frank, Charlie Wrangle, Rev. Al Sharpton all forcing the lenders to relax the rules so idiots making $5.00 an hour could qualify for a $500,000 home? The Democrat/ Liberal entitlement utopian morons, destroyed it for all the hard working RESPONSIBLE people who actually did things the right way. You know, like budgeting and planning and having a fall back plan if things got tough.....
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  • clevesside wrote...
    Instant gratification in my home....
    June 25, 2012 8:25 am
    ...if not now, when? Most folks need to accept that the housing landscape has changed and evolved (NOT devolved). You must otherwise wait, or instruct your kids on what to expect. Great parental opportunity, if chosen.
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  • HPD 5-0 wrote...
    Keeping prices low so more people can buy a Home should be the goal
    June 25, 2012 9:05 am
    Of course. Everyone should "own" a home. That would be "fair"...even when they realistically either, can't afford it or are too irresponsible to pay for one. Yep...everyone should "own" a home. Isn't that liberal, Utopian ideal what got us here in the first place, or have you forgotten already?
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  • messiah101 wrote...
    HPD5-0
    June 25, 2012 10:30 am
    Yep loose lending rules certainly cause housing bubbles on that we can agree.The home I rented in California was valued at about $250K when I moved in during the mid 80s when I moved out in 2004 the owner sold the home for $899,000,the house sold again about 8 months ago for under $500K.Speculators drove the prices higher and higher because loans were easy to get.In the end someone ate a $399,000 loss and you know who that was
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  • messiah101 wrote...
    HPD5-0_Maplefish
    June 25, 2012 11:46 am
    FYI,tighter lending rules LIMIT the number of buyers.Phil Gramm a GOPer was the Chairman of the Senate Banking Committee.1995-2000 have you EVER given a thought that he had a great deal to do with the problem also? You can add the names of the Banking community as well as the Home Builders and Real Estate people who wanted lesser restrictions on home lending to your list.Follow the money Sonny.Your constant finger pointing to a couple of Dems as being the sole culprits should bring a GRIN to any informed persons face.You guys will never ever get anything straight.Its a wonder you can find the toilet (or do you?)
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  • HLC wrote...
    Tighter lending rules?
    June 25, 2012 10:15 am
    That only happen when Barney Franks and Richard Dodd are out of the picture. Their failure to do their jobs was the reason for the economic collapse. The facts show that those two shot down every attempt by GW to put stricter regulations and banking and fannie mae and freddie mac.
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  • messiah101 wrote...
    HLC
    June 25, 2012 10:59 am
    Why is it you Rightys ALWAYs overlook Senator Phil Gramms role in the economic problems ?After all he was the Chairman of the Senate Banking committee and a leader in deregulating the financial industry.Do some homework and you may start pointing at Gramm as the main culprit.And believe it or not John McCain had this guy as is advisor on economics when he ran against Obama. McCain-Palin-Gramm now thats a trifecta for ya
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  • messiah101 wrote...
    HLC
    June 25, 2012 6:56 pm
    Tighter lending rules are ALREADY in force and defaults on these new loans are way way down.
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  • sohojo wrote...
    Why not fix it?
    June 25, 2012 10:59 am
    My thought is that the way to really fix the housing issues is to help the people that are underwater by revamping their home loans to current market value structure and lower rates to 2%. I'm sure this won't happen as greed has corrupted the housing "system".
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  • maplefish wrote...
    Good start sohojo
    June 25, 2012 11:22 am
    Hopefully, the banks that we bailed out will do what the bail-out money was intended for. Helping the responsible hard working honest people that suffered the lost equity because of the idiots who felt they DESERVED to own a home even though they couldn't afford a bus pass.....
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  • messiah101 wrote...
    maplefish
    June 25, 2012 2:57 pm
    You actually believe that people who lost equity in their homes are entitled to some type of help from the banks?Why?Do you think that a homes equity should be protected ? How would you go about doing that? Who would pick up the tab?
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  • maplefish wrote...
    Well, Messiah
    June 25, 2012 5:06 pm
    Let's review, shall we: The bail-out money was supposed to go to banks to loan to responsible people to help get businesses moving again and get money flowing back into the stagnant economy. So, money was going to be made available for loans and re-fies for those who were being responsible. They could have saved entire neighborhoods and some equity could have been salvaged but the banks refused to loan ANY of the Tax payers bail-out stimulous. The banks would not budge. This was all part of the Obama admins stimulous in order to get the economy moving again....remember your dear leader spending $5 TRILLION in STIMULOUS...
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  • messiah101 wrote...
    maplefish
    June 25, 2012 7:07 pm
    I borrowed money for a new home 2 years ago. I didn't have the highest credit score (690)got a mortgage at 4.875% no points,refinanced this year at 4.125% no points.So it appears you believing the B/S from the media.If a person is a bad risk why would you give him another chance?As far as equity goes the regulated marketplace will slow increases.But if it doesn't so what?You still have a roof over your head
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  • maplefish wrote...
    Glad for you
    June 25, 2012 8:18 pm
    I'm glad you were able to re-fi. I was fortunate enough to sell big & buy bigger at a vy low rate at just the right time. However, I know many succeful people with decent credit that are not behind on their mortgage and because they have lost so much equity are upside down and have had to jump through ridiculous hoops to no avail. Maybe you should give your lender some free advertisement...
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  • messiah101 wrote...
    maplefish
    June 26, 2012 7:05 am
    Why would the Bank knowingly lend you more then a property is worth?Years ago it was SOP to expect a 20% down payment and that gave the Bank a bit of a safety net but when property values soared folks didn't have that 20%.So they allow you to go in with less but require PMI.But no bank will lend more then the appraisal,why would they?I went through COSTCO,they have many lenders in their program, out of which I chose Bank of the Internet and the loan was done in 30 days.My advice to folks who are under water on their homes is to sell things,work 2nd jobs in order to pay down the loan to what the home appraises at.Of course in most cases this might be impossible,home values are rising in some areas so perhaps they can re-fi soon.What do you consider ridiculous hoops?Remember the Golden Rule,he who has the GOLD makes the RULE
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  • maplefish wrote...
    LOL
    June 26, 2012 8:24 am
    You sound like a conservative!
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  • HLC wrote...
    messy?
    June 25, 2012 1:02 pm
    The finger points at Franks and Dodd. Which finger you point is up to you. Do some research outside the dnc playbook and you will be enlightened to the facts. Is there a taxacrat that can read and comprehend what they read, besides obozo and his teleprompter oops I did say comprehend, that leaves him out.
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  • messiah101 wrote...
    HLC
    June 25, 2012 3:31 pm
    Do yourself a favor and google -sub prime mortgage crisis-.And find out what happened before flapping your gums and continuing to look like a fool
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  • 509 wrote...
    The system is much, more corrupt than you think.....
    June 25, 2012 7:40 pm
    read the following book: All the Devils Are Here: The Hidden History of the Financial Crisis is a nonfiction book by authors Bethany McLean and Joseph Nocera about the 2008 financial crises....and yes folks we have "the best government money can buy". AND THEY BOUGHT ALL the POLITICIANS!!! This August 7th VOTE both parties out of office. Vote for ANY other parties other than Democrats or Republicans.
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