With the housing market down the spiral and expected to go down more in coming months, people sentiment towards owning a house continues to strengthen compared to last years. While nearly one-quarter of home owners owe more on their home than it’s currently worth, Americans still see the value in home ownership and still consider it part of the American dream.

According to the 2011 National Housing Pulse Survey released today by the National Association of Realtors®, 72% of renters surveyed said owning a home is a top priority for their future, up from 63% in 2010. Seven in 10 Americans also agreed that buying a home is a good financial decision while almost two-thirds said now is a good time to purchase a home. The annual survey, which measures how affordable housing issues affect consumers, also found that more than three quarters of renters (77%) said they would be less likely to buy a home if they were required to put down a 20% down payment on the home, and a strong majority (71%) believe a 20% down payment requirement could have a negative impact on the housing market.

Over half – 51% – of self-described “working class” home owners as well as younger non-college graduates (51%), African Americans (57%) and Hispanics (50%) who currently own their homes reported that a 20% down payment would have prevented them from becoming home owners. Pulse surveys for the past eight years have consistently reported that having enough money for a down payment and closing costs are top obstacles that make housing unaffordable for Americans. Eighty-two% of respondents cited these as the top obstacle, followed by having confidence in one’s job security.

The survey also found respondents were adamantly against eliminating the mortgage interest deduction. Two-thirds of Americans oppose eliminating the tax benefit, while 73% believe eliminating the MID will have a negative impact on the housing market as well as the overall economy.

When asked why home ownership matters to them, respondents cited stability and safety as the top reason. Long-term economic reasons such as building equity followed closely behind. On a local level, respondents said neighbors falling behind on their mortgages and the drop in home values were top concerns. Foreclosures also continue to remain a large concern, with almost half of those surveyed citing the issue as a problem in their area.

In another poll conducted by New York Times and CBS News on June 24-28 of 979 adults. Nearly nine in 10 Americans say home ownership is an important part of the American dream. These polls and survey strongly shows that many people still believe in the American dream and want to achieve their dream once they can able to afford it. Overall its a good news for real estate industry but still we have to see the end of tunnel to start a new era. We hope it’s not too far from where we are now.

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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