Survey Shows Rise in Homeownership Confidence – NMP Skip to main content

Survey Shows Rise in Homeownership Confidence

Jul 11, 2012

Brookfield Real Estate and Relocation Affiliates Inc., owner of the Prudential Real Estate franchise network, has released the quarterly Prudential Real Estate Outlook Survey showing that Americans’ confidence in homeownership and real estate continues climbing from the first quarter and a year earlier. Signs of growing confidence are widespread, according to the national survey: ►69 percent believe that real estate is a good investment despite the market volatility of the past few years, up six percentage points from the first-quarter 2012 survey and 17 percentage points from first quarter 2011. ►72 percent expressed confidence that the real estate market and property values will improve during the next two years, including a six-point jump among those “very confident” or “confident” versus the first quarter 2012, and a 14-point gain in this subset over first quarter 2011. ►Nearly two-thirds (64 percent) of respondents have a favorable perception of the U.S. housing market, up from 60 percent in first quarter 2012 and 52 percent in first quarter 2011). “The American Dream is clearly on the mend,” said Earl Lee, president of Prudential Real Estate. “Americans are feeling better about homeownership and the ongoing recovery taking place in residential real estate. Many are increasingly optimistic about their personal circumstances and, with housing affordability near all-time highs, they want to act on the opportunity.” Seventy-eight percent of respondents said owning a home was still “very important,” the same percentage reported in the first-quarter 2012 study. A full 98 percent said homeownership was at least somewhat important. In addition, with interest rates at historically low levels, 96 percent of respondents at least “somewhat agree” that now is a great time to buy a home—the same percentage reported in the first-quarter 2012 study. More than the financial reasons to buy a home, respondents placed higher priority on the emotional reasons for homeownership. “Control over living space,” “more space for family,” “safer neighborhood” and “good place to raise a family” rated higher than “a good investment,” “financial security” and “tax benefits.” “Normalcy is returning to the U.S. real estate market and more people are buying homes for traditional reasons – to raise a family, feel secure and build a future,” said Lee. “Every last emotion is rolled up into owning a home—it’s where life happens—so it’s no surprise that the emotional side outweighs financial reasons for owning a home among respondents.” The survey also shows that consumers remain cautious about the real estate market and process, as a full 30 percent “strongly agree” that the housing crisis reminds them to be more careful about buying or selling a home; up two percentage points from the first-quarter 2012 survey. In addition: ►Nearly two-thirds (65 percent) of respondents indicated that financing or getting a mortgage is more challenging than it was before the market crisis, which is up from 58 percent in the first-quarter 2012 survey. ►Among those considering a real estate transaction, 39 percent expressed concern they won’t be able to sell their current home, up 11 points from the first-quarter 2012 survey and 10 points from first quarter 2011. ►Given the dynamics and challenges of today’s real estate market, nearly three out of four (74 percent) respondents think it is more important than ever to work with a good real estate agent for the best success in buying or selling a home (up from 71 percent in first-quarter 2012 and 67 percent in first quarter 2011). “Real estate markets are improving around the country and consumers face many choices,” concludes Lee. “Consumers should seek out a real estate professional who can help them make the best choices to suit their needs.”
About the author
Published
Jul 11, 2012
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026