Nearly Half of Americans Say It's Not a Good Time to Buy

The share of American adults expecting home prices to increase over the next year reached its highest point in Gallup history, just 1% above 2005 survey results. Gallup found 71% of American adults predict the average price of a home to increase, a stark jump from April 2020 results when 40% expected prices to rise. Another 25% of Americans last year said prices would decrease compared to just 10% this year. And 18% say home prices will remain the same through 2021. These expectations show Americans view today’s housing market as booming and highly competitive. Only 53% of those surveyed believe it’s a good time to buy, a slight increase from 2020’s record low of 50%.

As the housing market recovered in the ensuing years, Americans were more likely to predict an increase in local home values, a trend that was interrupted last year amid widespread restrictions on business and public activity, including home showings, last spring.

That brief pause did little to stop the surging home market, which only grew hotter when the federal government cut interest rates and sent Americans several rounds of stimulus payments. These actions, designed to contain damage to the economy from the coronavirus, came at a time when the supply of available houses could not keep up with demand. Additionally, many people forced into remote work and schooling by COVID-19 health restrictions were looking for new houses to accommodate those lifestyle changes.

Americans in all regions of the country expect housing prices to rise in their area, though Midwestern residents are slightly less likely to do so than others. Midwestern residents were also less likely than those living in other areas of the U.S. to expect prices to rise last year.

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