Consumers Don't Expect Housing Recovery Until 2013, Experts Agree

Americans continue to grapple with uncertainty about the housing market, with 58 percent of U.S. adults expecting recovery to be at least another two years away, according to the results of a new survey conducted by Trulia and RealtyTrac, which tracks homebuyers’ attitudes toward foreclosed homes. One in five consumers believe it will be 2015 or later before we see a housing recovery.

As a result of the recent robo-signing debacle, nearly half of U.S. adults surveyed said they now have less faith in mortgage lenders and banks. Another 35 percent believe the robo-signing issue will delay the housing market’s recovery, and 24 percent of those surveyed say they have lost faith in the government because of the way the robo-signing mess has been handled. 

Pete Flint, co-founder and CEO of Trulia, stressed in a conference call with reporters announcing the survey results that consumer confidence is key to a healthy housing market.

“Government incentives have come and gone and historic lows in interest rates have done little to spur recovery,” Flint said. “Then, as if prospective buyers and sellers needed more to be concerned about, the robo-signing issue caused a ‘what’s next?’ fear to surface in the minds of consumers who, frankly, have lost faith in banks and their government to make good decisions.”

Rick Sharga, RealtyTrac SVP, told reporters that the best thing the government can do right now to support housing is to create more jobs to ensure people can continue making mortgage payments and keep their homes and to get more buyers into the market.

http://www.dsnews.com/articles/consumers-dont-expect-housing-recovery-until-after-2012-experts-agree-2010-12-07