Three "Ups" and One "Down"

March 9, 2009
1. The number of transactions in many communities has doubled or tripled over last year.
2. The affordability index is approximately 60% - meaning that a median income person can qualify for a median priced home in the Inland Empire.
3. The traffic at open houses, the number of showings of listed properties are both increasing.
The one "down" is still the reluctance of prospective buyers to actually purchase a home.
Contrary to some media reports, it is not the lack of the ability to obtain financing that has impede buying decisions. Rather it is the "fear factor".
A survey conducted by John Burns Real Estate Consulting which was done in December 2008 showed the following reasons why home buyers aren't buying.
Almost 40% of those surveyed cited concerns about the economy and jobs. Another almost 30% cited the inability to sell their present home. And 20% were worried about further price declines. The remainder did have down payment and credit concerns. This emphasizes that fear is playing a major role in the economic recovery.
I would love some feedback from the readers of this blog. Are the concerns of the survey your concerns and if so what would allay those concerns. For what signs are you looking?
Click on the comment button and express yourself.