Rich Families Foresee Higher Home Values

A new survey from PNC Financial Services Group Inc. reveals that 65 percent of the wealthy home owners expect the value of their primary homes to grow by at least 10 percent over the next five years, 31 percent anticipate an increase of more than 20 percent, and only 7 percent believe a decline will occur.

Wealthy homeowners in Florida were the most optimistic, with half expecting an increase in home value of more than 20 percent; while those in New England were most cautious, with 18 percent forecasting a decline.

Buyers who were looking at real estate as a way to get rich quick are likely to be disappointed as the housing market slows.

"But, in general, established wealthy Americans haven't been speculative buyers, and they remain solidly confident in the long-term value of their real estate holdings," says Nicholas Buss, research director of PNC's real estate division.

Source: (WSJ) Hagerty, James R.