Prudential Financial surveyed over 1,000 Americans with a household income of at least $35,000.  Though 90 percent of those surveyed said they thought the home buyer tax credit was effective in helping many first-time purchasers take advantage of real estate investments, 65 percent of consumers that are actually shopping for homes believe the expiration of the tax credits will have little or no effect on their decision to purchase real estate.
The survey also reports that 79 percent feel that real estate prices will increase over the next five years with 20 percent predicting a substantial increase.  46 percent of real estate buyers expect prices to go up in their areas in just the next year. Only 12 percent are predicting the market will experience further decline and expect prices to fall further.

“The survey underscores the key role the federal home buyer tax credits played in stimulating residential real estate market activity and the U.S. economy,” said James Mallozzi, chairman and CEO of Prudential Real Estate and Relocation Services, Inc in a press release the company issued near the end of April.  “It also shows that most consumers believe the market has hit bottom and are more optimistic about the future.”

Despite the general downturn in the real estate market with the current recession, the survey also solidified the belief among consumers that purchasing real estate investments is still financially wise.  Roughly 75 percent of those surveyed believe a real estate investment will provide a better and more secure return than individual stocks, mutual funds or savings accounts. Many of those surveyed that are actually interested in buying a first-time home said low mortgage rates and current lower housing prices are motivating them to make a home buying investment more than any tax credits for purchasing.