Current Homebuyer Optimism Nearing Pre-Crash Sentiment Level

A majority of Americans believe local home prices will increase over the next year, per a new Gallup poll, signaling an optimistic view of the market. However, some housing analysts are not convinced.

Though the market is picking up momentum with steady rises in national median listing prices, some experts see warning signs. According to research firm Attom Data Solutions, the share of homes being bought and sold in the same year hit an 11-year high, a potential sign that the housing market could be overheating, MarketWatch reports. House-flipping's pre-crash peak was 334,000 in 2005, and today's levels are at more than 200,000.

House prices are soaring and, despite warnings from some analysts, most Americans believe they will continue to soar. A majority of U.S. adults (64 percent) continue to believe home prices in their local area will increase over the next year, a survey released Monday by polling firm Gallup concluded. That’s up nine percentage points over the past two years and is the highest percentage since before the housing market crash and Great Recession in the mid-2000s.

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