Consumers indicate home prices will rise

PRINCETON, N.J., April 15 (UPI) -- A third of U.S. consumers in a recent survey indicated they believed nearby homes prices would rise in the next 12 months, Gallup researchers said Thursday.

Nearly three-quarters of U.S. consumers -- 72 percent -- indicated it was a "good time" to buy a house, similar to last year, but a sharp climb from 2008, when 53 percent said it was a "good time" to buy, Gallup said.

But this year's survey found a difference between 2009 and 2010. This year, 34 percent of respondents indicated they expected home prices to rise. Last year, only 22 percent indicated they believed home prices would increase during the year.

Gallup said the figures were "potentially encouraging" for the housing market, presenting sellers with an audience of buyers who believe buying a home would be a good investment.

Working against the market, "it is hard to feel financially secure enough to make such a commitment (in buying a house) in an economy in which 20 percent of the U.S. workforce is underemployed," Gallup said.

Gallup's most recent home price survey involved 1,020 interviews conducted April 8-11. It carries a margin of error of 4 percentage points.