US homeowners see no change in the value of their homes in the year ahead, but expect home values to resume a moderate pace of increase during the next five years, a survey showed on Friday. The Reuters/University of Michigan Surveys of Consumers showed the majority of homeowners did not plan to sell their homes anytime soon.
"The near zero change expected by the typical homeowner during the year ahead will restrain borrowing against their home equity," a statement accompanying the survey results said. "This withdrawal of support for consumption spending will act to slow the pace of overall economic growth in 2007 and 2008," the statement said.
The US housing market is cooling off as higher interest rates and slowing demand take their toll. The survey showed that one-in-five homeowners did not anticipate a change in the value of their home during the next five years, while a relatively large number of households expected a prolonged period of stagnation.