SAN FRANCISCO, Dec. 7, 2016 /PRNewswire/
-- Trulia®, a leading destination for homebuyers
and renters, today released its annual 2017 Housing Outlook
Report. The Trulia® survey reveals a dramatic shift in
housing sentiments since the election in addition to new
predictions for mortgage rates, home prices, and home inventory, as
well as the top real estate markets to watch in 2017.
Election Outcome Renews Republicans, Depresses
Democrats
The surprising outcome of the 2016 presidential election
injected both optimism and pessimism into consumers' expectations
about the housing market in the coming year. Two surveys were
conducted online among over 2,000 U.S. adults each, one before the
Presidential Election (October 26-28)
and one after the election (November
15-17), by Harris Poll on behalf of Trulia, key findings
include:
- Following the election, Republicans seemed to feel a surge of
renewed positivity toward the housing market in 2017, saying it
will be a better year to buy a home than in 2016, after the
election, experiencing a 26 percentage point swing toward
optimism compared to before the election.
- Democrats turned bearish swinging from a position of optimism
before the election to pessimism after; Democrats optimism around
buying a home in 2017 fell 23 percentage points.
- For the first time since 2011, fewer Americans viewed
homeownership as a part of their American Dream, dropping to 72%
this year from 75% last year1. Millennials, aged 18-34,
saw the biggest drop, to 72% from 80% over that same time period.
However, 83% of these young Americans still plan on buying a home,
but most (72%) won't do so until at least the end of 2018.
Additionally, as mortgage rates have risen to nearly 4% since
the election, renters who wish to buy generally are not concerned
about rates stifling their ability to buy a home (18%).
Instead, saving for a down payment (59%), having poor credit
(38%), and rising home prices (35%) appear to be bigger challenges
for home buyers. Moreover, though home inventory is gradually
trending upwards in supply-constrained markets, equal or greater
growth in demand could push home prices up.
Sunshine State Dominates Among Housing Markets to Watch in
2017
Looking at the 100 largest U.S. metros, Trulia identified 10
real estate markets that are poised for growth based on strong job
growth over the past year, low vacancy rates, high affordability,
online home searches on Trulia, and a large share of Republican
households given their optimism for housing in 2017. Based on these
key metrics, Florida offers market
conditions poised for growth in metro areas across the state, with
Jacksonville, Fla.,
Cape Coral-Fort Myers, Fla., and Deltona-Daytona
Beach, Fla., taking the top three spots.
The top 10 housing markets to watch in 2017 are:
1. Jacksonville, FL
2. Cape Coral – Fort Myers, FL
3. Deltona-Daytona Beach-Ormond
Beach, FL
4. Grand Rapids, MI
5. Tampa-St. Petersburg, FL
6. Colorado Springs, CO
7. Charleston, SC
8. San Antonio, TX
9. Phoenix, AZ
10. North Port-Sarasota-Bradenton, FL
Quotes from Trulia's Chief Economist Ralph McLaughlin:
- "While it's still too soon to tell how President-Elect Trump's
surprising presidential victory will affect the housing market,
Republicans are feeling a renewed sense of confidence about all
things housing in 2017, while Democrats are feeling down. If these
contrasts lead to noticeable changes in housing market activity, we
think they'll help close the geographic divide in home price
appreciation.
- "Will mortgage rates stifle home buying in 2017? We think not.
At present, mortgage rates would have to double nationally for the
cost of renting to beat the cost of buying a home. Even with the
recent rate hike, homeowners appear to be far more concerned about
saving for a down payment, having poor credit, and rising home
prices than qualifying for a mortgage.
- "Gradually rising inventory in supply-constrained markets may
cause homes to be more affordable, but supply is only half of the
story. The combination of a healthy economy and new policies under
the Trump Administration could boost demand, driving up the pace of
appreciation yet again."
Survey Methodology
The 2016 surveys were conducted
online within the United States
between October 26th and
28th among 2,007 adults (aged 18 and older) and again on
November 15th and
17th, 2016 among 2,081 adults (aged 18 and over) by
Harris Poll on behalf of Trulia via its Quick Query omnibus
product.
About Trulia
Trulia® is a vibrant home
shopping marketplace, focused on giving homebuyers, sellers, and
renters the information they need to make better decisions. On
mobile and the Web, Trulia provides house hunters with insights and
unique information about properties, neighborhoods, and real estate
agents. Additionally, Trulia offers data and information about
schools, crimes, commute times, and the real estate market.
Launched in 2005, Trulia is based in San Francisco and is owned and operated by
Zillow Group (NASDAQ: Z and ZG).
Trulia is a registered trademark of Trulia, LLC.
1 Conducted by Harris Poll on behalf of Trulia from
November 19-23, 2015, among 2,016
adults ages 18 and older.
MEDIA CONTACT:
Cecilia
Xia
pr@trulia.com
415-400-7222
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