Even with the unstable economy and slowdowns in the housing market, most consumers still believe there is value in homeownership, but they are also more open to the federal government taking a more active role in overseeing mortgage and lending practices, according to the 2008 National Housing Pulse Survey, an annual survey released by the National Association of REALTORS®.
"As the leading advocate for homeownership and housing issues, NAR has supported more government oversight in lending as a result of abusive and predatory lending practices that have caused families to lose their homes and savings and led to increased foreclosure and vacancy rates," said Dick Gaylord, NAR president. "The survey also clearly shows that falling home prices have improved housing affordability, allowing many Americans – some of whom may have been priced out of the market a few years ago – to achieve the dream of homeownership."
More than half of those surveyed (56 percent) favor the federal government taking a more active oversight role in lending and mortgages, while 38 percent prefer that private companies oversee their businesses. That is a marked shift from the 2007 survey, which showed respondents were more evenly split on the issue of government involvement.
Nearly four out of 10 say the economy has taken a personal toll and report their personal financial situation has gotten worse over the course of the past year; the majority, 47 percent, feel their personal financial situation has stayed about the same.
Foreclosures remain a concern among many Americans. Over one-quarter of respondents expressed concern that their home or the home of a family member may be foreclosed upon because of their inability to make mortgage payments. Nearly half of respondents (46 percent) report that foreclosures are a problem in their area, up from 38 percent in 2007; and 42 percent say the rate of foreclosures has increased over the last year.
Despite troubles with the economy and difficult housing news, Americans remain surprisingly confident about the housing market. Eighty-five percent of respondents believe buying a home is a good financial decision, down 2 percent from last year. Two-thirds of Americans believe now is a good time to buy a home, up nearly 12 percent from 2007.
"Homeownership offers immediate benefits and long-term value, and despite recent slowdowns in some markets, consumers continue to believe that now is a good time to buy a home," according Gaylord.
"Whether for individuals or families, buying a home fulfills a lot of needs, says Mark Burns, past president of the Silicon Valley Association of REALTORS®. "Our society values homeownership. It indicates success and the ability to accept financial responsibility."
There are tax incentives connected to buying a home and there is also the investment potential, but Burns cautions, buying a home is a long-term commitment. "No one should buy a home just to get a write-off. Buying a home and relying on future appreciation to bankroll personal expenses and lifestyle is a mistake and should not be a consideration when buying," Burns says.
Burns underlines the social benefits of homeownership. "The goal of owning your own home offers freedom and responsibility. You have control over your personal environment. You decide whether to stay or move. When I drive home from a long day I know that my home is my retreat from the hustle and bustle of work and play in Silicon Valley. I may be paying more than I would if I rented, but that's the price for the security and control I get in return. It is also motivation for me. They call it the 'American Dream,' but I believe it is a universal goal for most folks," Burns says.
The 2008 National Housing Pulse Survey is conducted by NAR's Housing Opportunity Program. The telephone survey was among 1,000 adults living in the 25 most populous metropolitan statistical areas.
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 email or call the SILVAR office at (408) 200-0100.