This week’s Sentiment Survey special question asked AAII members about their perception of the current state of the housing market. The two largest groups of respondents were nearly evenly split, and opinions overall were mixed. Nearly 27% of described the housing market as either being overvalued, weak or otherwise at risk of weakening. About 25% described the housing market as being good and/or continuing to do well until interest rates increase. Slightly more than 11% said housing is growing slowly, while 7% housing is a bubble and 6% believe the housing market is steady.
Here is a sampling of the responses:
- “Decent, but it’s not clear about the overall demand. Some markets are hot, while some are not.”
- “Prices are rising a bit here and there, but there is no bubble building.”
- “Market is picking up slightly and should continue to expand at a modest pace.”
- “A little ahead of itself. The anticipated, gradual rise in interest rates should make real estate a relative underperformer in the next couple of years.”
- “Where I live housing prices have increased too fast and do not seem to be sustainable.”
- “Ready for a correction. Only low mortgage rates are propping up the market.”
Want to weigh in? Take the survey yourself and see results online at http://www.aaii.com/sentimentsurvey.
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