What do Homeowners Know Anyway?

For one thing, homeowners know how to worry (not that we needed any sophisticated poll to tell us that). This morning, AP-AOL Money & Finance released the results of a recent poll of homeowners. Among the major findings: 

• More than one-quarter of homeowners worry that their home will lose value over the next two years.
• One in seven mortgage holders worry that they won’t be able to make their monthly payments on time over the next six months.
• 60% of homeowners definitely will not buy a home in the next two years (53% said the same thing in September, 2006).
• 11% of homeowners are certain or very likely to buy soon.
• One in four homeowners believe that prices will continue to fall, versus four in ten, who believe that prices will rise.
• 35% feel that house prices are just about right, half say homes are overpriced, and about 10% feel that housing is underpriced.
• One in ten homeowners have adjustable rate mortgages, which is just about half the number who had them two years ago.

The bottom line–nobody knows which way the market is heading next, though I think the people who stand to benefit the most (or lose the least amount) are non-contingent, qualifying home buyers who take public transportation (or own a Prius), prefer McCafe’s to Starbucks, and are actually capable of making mortgage payments.  If you’re one of this elite group–high five!

Second up, homeowners who are just plain old staying put for the duration should do just fine as well. Theoretically, this is totally logical, but it looks to me like even those of us who are laying roots right where we stand are feeling a little pessimistic about things also. I conducted my own highly scientific poll this weekend (the sample consisting of contractors who have come through my house this weekend), and among my major findings:

• Home remodeler’s predicted an increase in business due to the stagnant real estate market; typically when people stop moving around, they invest in home remodeling and upgrades instead.
• The expected uptick in remodeling has not occurred (yet, if it will at all).
• However, while there hasn’t been a big increase in the remodeling business, there hasn’t been a big decrease either–it’s been pretty steady.

(And hey, these “poll results” didn’t cost a me a fortune in survey fees either, like it did AP-AOL–er…I guess maybe it did, depending on how you look at it.)