WASHINGTON -- A new poll by the Associated Press and AOL Money & Finance offers little hope for a resurgence in the mortgage market as a growing majority say they won't buy a home anytime soon.
The growing pessimism about the nation's housing crisis is cascading, with retailers reporting lower sales volume and corporate bankruptcies on the rise. The poll found that more than a quarter of homeowners worry their homes will lose value over the next two years and one in seven mortgage holders fears they won't be able to make their monthly payments on time over the next six months.
Some 60% said they definitely wouldn't buy a home in the next two years, up from 53% who said so in an AP-AOL poll in September 2006. Only 11% said they were certain or very likely to buy soon, down from 15% two years ago.
The reluctance to buy homes is due to the expectation that prices will continue to decline, findings show, making it a buyer's market. Half of respondents said homes were priced too high, particularly in the Northeast.
The poll was conducted from March 24-April 3 by Abt SRBI Inc., and involved telephone interviews with 1,002 adults nationwide and interviews with 769 homeowners.
--cburger@cutimes.com
