Homeowner Confidence on the Skids

Homeowner confidence is on the rocks and homebuyers are pessimistic about 2011 housing marketJittery homebuyers, take heart: You're not alone. Homeowner confidence is dropping and consumers are unsure if the market has truly bottomed, according to the latest National Housing Survey conducted by Fannie Mae.

The Third Quarter 2010 Fannie Mae National Housing Survey polled homeowners and renters between July 2010 and September 2010 – prime home-buying months – and the response was less than sunny. Despite historically low mortgage rates, just 68 percent of respondents thought it was a good time to buy a home, down 2 percentage points from June, while 29 percent thought it was a bad time to buy, up 3 percentage points from the last survey.

But are we placing our bets too soon on the 2011 housing market?
Part of the endemic problem facing the housing market is consumers' growing skepticism about the financial security of a home investment. Just one-fourth of respondents think that home values will rise in the next year, 6 percent lower than in June, while 22 percent think prices will drop.

We covered homebuyer anxiety last week in a piece looking at the growing number of delinquent borrowers who are becoming renters. But is renting really the only way out of the housing mess? Would you consider buying a home in 2011? Let us know in the comments section.

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