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REALTOR®: Most Americans Still Believe Buying a Home is a Good Financial Decision, NAR Survey Shows

Wednesday, July 15, 2009

Despite challenges with the economy and housing market, 83 percent of Americans still believe buying a home is a good financial decision. Three-fourths of those surveyed also believe now is a good time to buy a home, a number that has increased steadily the past two years. In fact, one-third of renters are thinking more about buying a home than they were a year ago. These are findings from the 2009 National Housing Pulse Survey, an annual survey released today by the National Association of Realtors®.

The survey, which measures how affordable housing issues affect consumers, also reveals having enough money for a down payment and closing costs are still the biggest obstacles to buying a home for most Americans, according to the survey.

"Homeownership is an investment in your future; however, saving for a down payment and closing costs is still too great of an obstacle for 82 percent of house hunters looking to take advantage of the current market," said NAR President Charles McMillan. "Monetizing the $8,000 first-time buyer tax credit for down payment or closing costs on FHA-insured mortgages is a positive first step. Our hope is that the tax credit will be extended and expanded to all home buyers and will help bring stability to the housing market and enable more Americans to achieve the dream of homeownership."

NAR has reported evidence of recovery is already demonstrated in California, where home sales are rising much faster than anticipated, with some areas in the state seeing a 70 to 80 percent increase in sales. Julia Truesdale Keady, president of the Silicon Valley Association of REALTORS®, says favorable housing affordability and the first-time buyer tax have helped boost activity in the local housing market.

"Monetizing the $8,000 tax credit has helped increase housing demand. First-time buyers are being drawn off the sidelines by the tax credit, which is helping to absorb inventory," Keady said. "A buyer's first step should be to contact a REALTOR® who can help them determine if they qualify for the tax credit under IRS guidelines and assist them through the purchase process."

While nearly three-fourths of Americans are concerned about the local drop in home values, respondents expect to see more stability in the near future. Nearly seven in 10 expect local home prices to remain about the same in the next three months; only 18 percent expect prices to further decrease.
The drop in prices has improved affordability, and consequently, concerns about the lack of affordable housing are the lowest they've been in seven years of polling – 34 percent say it's one of their biggest worries, down from 41 percent two years ago.

"Favorable buying conditions are creating a window of opportunity for potential home buyers, but it's important for home buyers to stay within their budget," advised Keady. "As always, potential buyers should seek the advice of a professional REALTOR® who is knowledgeable about the local market and can help them arrive at a decision that is right for them."


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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