Buyer’s Aren’t Rushing To Purchase Homes
A recent poll released by Realtor.com has confirmed what many realtors have believed, that being most potential buyers aren’t yet ready to purchase a new home.
A poll indicated that 53% of potential homebuyers aren’t ready yet to fully consider buying a new home, though they are looking, with the number one reason being the worry about losing their jobs, which makes sense as unemployment continues to rise.
Nearly 33% of potential buyers cited worrying about losing their jobs as the number one reason, while 16% worried that they might not be able to sell their current home to move into a new home, another valid concern. At least 8% are probably correct, that being there waiting for home prices to fall further.
As realtors wait for the housing market to at least level off, they’re starting to recognize that there might have to be changes in how to direct potential homebuyers into considering the benefits of buying a new home, while also realizing that there’s a great level of mistrust in the industry right now; buyers also want a little bit of truth. Actually, they want a lot of truth, something that many in the industry have been accused of not giving clients.
As with most polls, there was some other information to glean from. Some consumers who were interested in buying stated that they wanted to try to take advantage of some of the government’s tax breaks and incentives by looking at homes. Others believed that houses probably have fallen drastically enough already, and are ready to find some good deals.
An interesting statistic is the dichotomy of looking at foreclosed homes. Around 20% said they were interested in looking at and possibly purchasing a foreclosed home because of the price. At the same time, a high number of people said they wanted to stay away from foreclosed homes because it sometimes takes longer to purchase one. Plus, they worried about the cost of repairs. That second part is a little strange, considering that most of the homes foreclosed upon aren’t typical of traditionally foreclosed homes, and should be in better condition than what someone might usually see. Realtors need to convey this message better, which would probably help if they went out to look at some of these properties beforehand.
Probably the scariest thing for agents to realize is that, even with potentially great deals right now, including the $8,000 tax credit (and even extra incentives coming from some states), buyers aren’t ready to rush into anything. They’re willing to look, but pulling the trigger is another matter. It could still be a long time before it becomes a seller’s market once more.
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Very interesting information, though it isn’t a surprise that so many people are still concerned about losing their jobs. I guess the good news is that buyers are being more realistic about whether or not they can actually afford to take on a mortgage loan.
“Plus, they worried about the cost of repairs. That second part is a little strange, considering that most of the homes foreclosed upon aren’t typical of traditionally foreclosed homes, and should be in better condition than what someone might usually see.”
Lost in that argument is the ability of VA, FHA, and some conventional loan buyers to obtain financing on these properties. Even a minor “subject to” appraisal kills the deal since the vast majority are “As Is” sales and the banks won’t invest any money in repairs. A foreclosed home with something as trivial as a broken seal on a window is the end of that transaction.
Augusta GA Homes
Navy Chief, Navy Pride
.-= Joe Loomer´s last blog ..Georgia Homestead Exemption Abolished – For Now… =-.
That may be the case in Georgia, but we have some pretty abused foreclosed homes here in Las Vegas. Some people trash the place before they lose it, other homes have been vandalized or used by squatters. Granted, I’ve seen some very nice move-in ready foreclosures, but there are some that will need a lot of TLC.
.-= Charles@Las Vegas Real Estate´s last blog ..Las Vegas Housing Market: Foreclosures Down, Sales Up =-.
Here over in Spain has one bank starting to first reparation (small reparations) and clean up the house before they put the foreclosed house on the market for sell. They get a much better price and also sometime, they not get any credit lost on the house in the end.
The commercial market is also sloooow.
I have been in contact with a number of people who want to move to Austin, but have homes to sell. Until the market picks up where they live, they will wait. Others, as the blog says, will not be ready for awhile becaue of the uncertainty of the economy and real estate market. Interestingly, today’s Austin American-Statesman has an article about D.R. Horton pushing ahead with new home starts in this area. They believe that buyers will get off the fence. Over the past several weeks I had noticed that Horton seemed to be well ahead of other builders in the Austin area with all their new home starts. Hopefully this is a good sign.
Buyers are looking at foreclosures here in Las Vegas and many are actually investors.
Although new home sales are down; The Greater Las Vegas Association of Realtors reported an all time record breaking high in June (last month) for home sales. This was attributed primarily to foreclosures and re-sales of existing homes.
.-= Mack@Las Vegas Homes´s last blog ..President Obama on Healthcare =-.
There are definitely different perspectives about the mindset of home buyers depending upon which real estate market is at issue. Just today the Wall Street Journal ran a front-page story about the top housing markets posting price increases, according to the April-May Case-Schiller price index. The San Diego Union Tribune ran a similar story. The funny thing is that these numbers are already two months old. We’ve been seeing home buyers competing over a limited supply of homes in San Diego since early 2009. In April and May I began to predict that prices would begin to rise under the strong demand and short supply, but I was severely criticized for that opinion at the time. Now the papers are reporting the same thing based upon old data that was available in the Spring, and all of a sudden it’s credible news. Funny how that works.
.-= Geoff@San Diego Real Estate´s last blog ..San Diego Real Estate Prices Part1 =-.
I can tell you that the number of closings are up and that’s true for much of the U.S. Every county around us and including ours saw a rise in the # of closed sales this past month.
.-= Brainerd Minnesota Real Estate Agent´s last blog ..Brainerd Minnesota Real Estate – What’s on the Market? =-.
True but the Las Vegas numbers are skewed due to the self imposed moratorium on foreclosures. Since it ended in June, June showed the highest foreclosure rate since August of last year. Now whether that trend continues is the million dollar question.
.-= Charles@Las Vegas Real Estate´s last blog ..Las Vegas Property Auctions – Deal or No Deal? =-.