Good News - Home Ownership Still a Goal
September 24, 2008
A study commissioned by Move, Inc and conducted by Harris Interactive indicated that that there remains a strong underlying demand for home ownership among the American population.
As prices have declined and income has pretty much remained constant, more folks will find median priced homes affordable. (One commentator, not Harris Interactive, suggested that at current market values, 60% of Inland Empire households could qualify for a loan.)
Harris Interactive found that 41% of current homeowners plan to purchase a home again, while 80% of renters intend to buy a home at some point in the future, with 47% of the 80% planning a purchase within the next five years. More people will do so for space-related (26%) and life-stage-change reasons )17%) such as having children or downsizing to a smaller residence.
The survey also found that buyers are willing to make sacrifices to save and earn extra income for down payments (which are nor being required) and that buyers will compromise on features and amenities in order to purchase a home that is affordable to them. The influence over environmental concerns, commute time and the location is reflected in buyer searches.
Ultimately the desire for home ownership will stabilize the real estate markets. Hopefully business and government can stabilize the credit markets.
The good news that I see emerging is that home buyers are reentering the markets as they recognize the value in current prices. Open houses have brisk attendance, mortgage brokers have seen an increase in loan aps and sales are up over last fall. The bets are on that now will prove to have been a great time to purchase a home.
A study commissioned by Move, Inc and conducted by Harris Interactive indicated that that there remains a strong underlying demand for home ownership among the American population.
As prices have declined and income has pretty much remained constant, more folks will find median priced homes affordable. (One commentator, not Harris Interactive, suggested that at current market values, 60% of Inland Empire households could qualify for a loan.)
Harris Interactive found that 41% of current homeowners plan to purchase a home again, while 80% of renters intend to buy a home at some point in the future, with 47% of the 80% planning a purchase within the next five years. More people will do so for space-related (26%) and life-stage-change reasons )17%) such as having children or downsizing to a smaller residence.
The survey also found that buyers are willing to make sacrifices to save and earn extra income for down payments (which are nor being required) and that buyers will compromise on features and amenities in order to purchase a home that is affordable to them. The influence over environmental concerns, commute time and the location is reflected in buyer searches.
Ultimately the desire for home ownership will stabilize the real estate markets. Hopefully business and government can stabilize the credit markets.
The good news that I see emerging is that home buyers are reentering the markets as they recognize the value in current prices. Open houses have brisk attendance, mortgage brokers have seen an increase in loan aps and sales are up over last fall. The bets are on that now will prove to have been a great time to purchase a home.
posted by shirley harry at 8:21 AM
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