In a quarterly survey conducted by Zillow, the findings revealed that out of more than 100 real estate professionals and expert, 40 percent believe that the housing recovery is still three to five years away based on the present trends in home prices and homebuyer activities.
However, about one third of the panelists were hopeful as they predict the housing market will normalize in one to two years while one out of five claim that the market is already stable or will within the next few months.
In another recent study conducted by Zillow, from one quarter in 2000, the number of adults living with at least one roommate has increased to one third in 2012.
Although these numbers mean potential new formations in the next few years, they remain stuck because of a slow growth in their wages and jobs.
Aside from these, Zillow also claims that demographic issues play a role in the current housing market. Millennials are delaying any form of major life commitments like marriage, parenthood and ownership while a lot of Americans nearing the retirement age are choosing to live in their homes longer, which significantly affects the housing recovery.
“We’ve reached a point in the recovery where the only real cure-all is time,” said Dr. Stan Humphries, Zillow’s Chief Economist. “[T]he landscape is slowly changing, as incomes begin to grow, negative equity fades and new households start to form. These shifts won’t occur overnight, but they are happening. Patience will be a virtue over the next few years as we wait for these traditional fundamentals to more fully take hold in the market.”