Via Barron’s (print ed) comes this fascinating survey by RBC Capital. They asked over 1,000 U.S. Homeowners numerous questions. Here are some of the more interesting answers:
75.6%: see their Home’s value climbing over the next few years
46%: expect a gain of 5% or more annually
30%: foresee a rise of 10% to 15% a year
70%: said their home’s value has risen 10% or more in the past 3 years
6% think their home’s value will sink in the next few years
7.8%: worry that their mortgage might exceed the value of their home
Any similarities between home owners and equity investors circa 2000 is strictly coincidental…
UPDATE 2 October 8, 2006 10:07am
OK, you guys are getting crazy in comments. Its a full blown smackdown, and I am staying out of it Over 100 comments in a day. That may also be a BP record.
In the spirit of full RE disclosure, I wanted to reveal this: We had looked at a house back in the Spring — we were literally the first ones to see it. Big property, a rather odd flag lot (100 yards off the road), built in the 50s (not our usual preference).
It was all original, and needed everything: Kitchen, baths, roof, major landscaping, garage doors, gutter and leaders. I figured it needed $100 -150k worth of work. Which means it was probably closer to $200k in renovations.
Since then, Mrs. BP saw it on MLS, some 20% below prior asking price. She called our agent, thinking it was a typo. It wasn’t.
We made an offer 11% below that. Turns out we were the 2nd highest bidder. A year ago, we might have been drawn into a bidding war. Not this time. Patience remains the operative word in RE.
UPDATE October 7, 2006 1:17pm
Wow! 57 comments in 3 1/2 hours. That’s some kind of BP record. I am posting somethng else above to encourage the debate to move on, but I will leave comments open for those of you still interested.
Review & Preview
Barron’s, page 14
October 9, 2006