More than half of homeowners responding to a new national survey said they expect their home values to appreciate five percent or more in the next year. Another 19% said they expect no change in the value of their homes in the next 12 months. Only 29% of homeowners said they expect home prices to fall five percent or more in the same period.

“Currently, we’re seeing a mostly balanced market between buyer demand and seller supply,” said Michael Bearden, president and CEO of HouseHunt, Inc. “There are exceptions, of course, but consumer expectations in our survey are more consistent with the actual marketplace than those in the media projecting a major downturn in home prices. Double-digit home value appreciation in many areas of the country in the past five years was simply not sustainable.”

Although the national median price of a single-family homes dipped to $219,880 in September, down just 2.5% over a year ago, the inventory of unsold homes fell for the second straight month. “The worst is behind us as far as a market correction,” noted David Lereah, chief economist for the National Association of Realtors. “When consumers recognize that home sales are stabilizing, we’ll see the buyers who’ve been on the sidelines get back into the market."

The latest consumer confidence survey is also positive. The University of Michigan’s consumer confidence index for October recorded a gain for the eighth straight month as consumers looked more positively on the pace of economist growth. Substantial gains were driven by the expectation of an improved pace of economic growth, larger wage gains and a low unemployment rate during the year ahead.