Even with ongoing challenges in the economy and housing market, nearly eight out of 10 respondents still believe buying a home is a good financial decision, according to the 2010 National Housing Pulse Survey, released by the National Association of REALTORS®.
The survey reveals job security concerns to be the highest in eight years of sampling, 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 the national REALTORS®. group's president Vicki Cox Golder. "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 still believe now is a good time to buy a home. While that number is down from last year (75 percent), it is up from 2008 (66 percent) and 2007 (59 percent). Also, lower home prices and record-low mortgage interest rates are making homeownership more attractive for renters. More than one-fourth of renters said they are thinking more about buying a home than they were a year ago.
Even with improved housing affordability, 79 percent of respondents still consider having enough money for down payment and closing costs to be among of the biggest obstacles to buying a home. Another obstacle is a lack of confidence in their ability to be approved for a loan, reported by 73 percent of respondents.
The good news is Americans are seeing more stability in the real estate market. Nearly seven out of 10 believe home values have stabilized in their area; the same number expects home sales to remain about the same through the end of the year.
Jeff Bell, president of the Silicon Valley Association of REALTORS®., said there appears to be more activity in the marketplace and buyers, though cautious, are confident about home values in the region. "We are seeing positive trends in the market, as prices continue to stabilize. Buyers who have been sitting on the fence are starting to realize they may not see record low interest rates again and now may be the opportunity for them to achieve their dream of homeownership," said Bell.
The 2010 National Housing Pulse Survey, which measures how affordable housing issues affect consumers, is conducted by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program. The telephone survey was among 1,209 adults living in the 25 most populous metropolitan statistical areas. The study has a margin of error of plus or minus 3.1 percentage points.
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.