buying a home is a good financial decision
Nearly eight out of 10 respondents in a recent survey believe buying a home is a good financial decision, despite ongoing challenges with the economy and housing market.
The eighth annual Housing Opportunity Pulse Survey, conducted for the National Association of REALTORS®, measures how affordable housing issues affect consumers.
Pollsters found job security concerns to be the highest since the survey’s inception, with 70 percent of Americans saying job layoffs and unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership.
"The real issue facing the nation’s economy right now is that many Americans can’t find meaningful work to support their families," said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. "While a job recovery is what’s needed right now to get the economy and housing market back on the right track, owning a home continues to be part of the American Dream and one of the best long-term investments in your future."
Despite economic uncertainty, 68 percent of those surveyed still believe now is a good time to buy a home; while that number is down from last year (75 percent) it’s up from 2008 (66 percent) and 2007 (59 percent).
Among other key findings:
- Respondents see the recession and job losses as the main reasons for the foreclosure problem, a shift from last year when they were more likely to blame homeowners who bought homes they could not afford.
- A majority of renters say that owning a home at some point in the future is either one of their highest priorities (39 percent) or a moderate priority (24 percent). Just 21 percent of renters say that owning a home is not a priority at all.
- Frustration with banks is up: now a majority worry that banks have made it too hard to qualify for a home mortgage loan.
- 51 percent of respondents say foreclosures remain a big or moderate problem in their area. While there has been a significant drop in the percentage of those surveyed who say foreclosures have increased, 51 percent say that the rate of foreclosures is about the same as it was last year.
- Most of those surveyed say that it is harder to sell a home in their neighborhood than it was a year ago.
- Looking forward, 70 percent expect real estate sales in their neighborhood to remain about the same over the next few months. A nearly identical number (69 percent), also expect home values to remain the same.
- Nearly one-quarter (23 percent) are now very concerned about the number of homes and condos for sale in their area—a number that is up 7 points from last year.
- Most respondents are more concerned about the drop in home values than they are about home costs being too high. Still, cost remains the significant barrier to many who would otherwise like to buy a home.
NAR's Housing Opportunity Program, www.realtor.org/housingopportunity, was created in 2002 to encourage local Realtor® associations to create initiatives that help increase housing opportunities available to consumers and make affordable housing more readily available in their communities.
NWREporter December 2010 :: Northwest Multiple Listing Service.