Americans do not expect home prices to improve any time soon

A recent survey from Housing Predictor found Americans feel home prices will not improve in the next five years, and millions of underwater homeowners will face the threat of default. The results of the poll show how significant of an impact the housing collapse has been on homeowners and renters, and how strongly Americans feel about the financial crisis that has taken more than three years to show any signs of recovery.

The survey found 66 percent do not expect home prices to improve by 2016, while 34 percent said the market could recover in the next five years. In addition, the results showed two out of every three applicants for a home loan are unable to qualify for a mortgage, as lenders are tightening their underwriting criteria and required equity in response to the volume of foreclosures they are processing.

The California housing market, however, recently experienced a modest rebound in August, which outperformed July and August 2010 in home sales. However, while sales have increased, the average price of homes has dropped and more than half of home sales were of distressed or foreclosed properties, The Street reported.

DataQuick statistics found the median home price in California during August dropped 1.2 percent from July, to $249,000, and down 4.2 percent from August 2010. Of the existing homes that sold in August, 34.6 percent were foreclosed properties, while short sales made up 17.8 percent of resales. The average monthly mortgage payment for August was $982, the lowest on record in the state.
 

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