Half of American homeowners do not expect their house to gain in value in the coming year although those who said the value of their property was declining appeared stable, according to a survey.
Last month, 17% of homeowners reported that their home had lost value, unchanged from the second quarter and above the 7% recorded a year ago, said Richard Curtin, director of the Reuters/University of Michigan Surveys of Consumers in a statement.
About 49% of the respondents reported gains in the values of their homes, also unchanged from the second quarter, but below the 64% recorded in July last year.
"More importantly, when asked about prospective changes in the value of their home, half of all owners reported that they didn't anticipate any appreciation in their home value during the year ahead for the fourth consecutive month," Curtin wrote.
Home price appreciation has slowed sharply during the past two years as mortgage rates have risen and first-time buyers were priced out of the market. Some data shows U.S. home prices are declining, which has contributed to a surge in defaults and foreclosures.
According to the Reuters/University of Michigan Surveys of Consumers, one-in-five home owners in the Northeast expected declines in their home values during the year ahead. This was twice that of one-in-10 in Southern home owners who anticipated falls.