Financial Crisis Keeps Home Buyers on Sidelines
With the housing market already slogging through a slump of historic proportions, a recently-released Trulia study shows that the financial crisis threatens to delay a potential comeback in the sector.
From Trulia, via Housing Wire:
More than 70 percent of non-homeowners surveyed say they have no plans to purchase a new home in the next year. Nearly half of respondents (44 percent) who fall in the 18-34 year old demographic—the sector thought to encompass most first-time homebuyers—confirm that the reason they do not own a home right now is because it is too cost-prohibitive. Among those aged 35-44, 41 percent of respondents polled confirm that concerns about being able to qualify for a home loan is keeping them on the sidelines of homeownership. In fact, only 12 percent of non-homeowners say they expect to buy a home in the next 12 months.
"It appears that the financial and mortgage meltdowns really have had their greatest impact on the sector of American consumers who haven't yet bought a home," said Pete Flint, CEO of Trulia, which plans to make its "American Dream" survey a recurring measurement and barometer of consumer attitudes toward buying and selling real estate.
"This combination of the mortgage and Wall Street crisis is tantamount to a one- two punch that has knocked the wind out of the American home buying public. The question is how quickly the American psyche will heal. Despite this short term pain, half of all Americans believe that home ownership is still the cornerstone of the American dream. It is the dream of homeownership that—in the end—may help the market rebound."
Tags: real estate | Wall Street | housing market | housing
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Reader Comments
Hold on to your money - Signifcantly Ever Lower Home Prices in th enear future!
I've been saving $ for few years and have $50K to 100K for a down payment. I have followed homes on small acreages in the Northwest and have noticed prices really going "south". Do not plan on buying until almost all terms, pricing etc. are heavily in my favor!
Prices should be down up to 50% from the infalted pricing of just a year ago! Buyer's don't be sucked in by Real Estate agents or Mortgage Lenders who use of the term "fair market value" or "comparables". There is no such thing as fair market value when its heading lower by at least 10 to 15% over the next year!
Buyer's with cash for a big down payment are in the driver's seat and "you" should realize this - I DO!
Don't do anything to prop-up inflated home pricing. Pricing needs to come in line with the "median" wage erner. Let's do future home buyers a big favor and keep our money on the sidelines until home prices are where they should be in most areas of the country - that is 35 to 50% lower than in 2007-2008!
Will buy a home in the next 18 months - on my terms!
So drop housing prices ...
and make loans easier to qualify for. In most industries if something doesn't sell you run a sale, not raise prices and get Uncle Sam to rob taxpayers and bail you out.
Refinance
Dear Mr. Bill O’Reilly
On the web site with Fanie Mae is a list of participant lenders that they say would help home owners refinance.When you click on the link and call the lender they said they dont know anything about the economic housing plan?
I need to refinance and I can't. Where should I look for help.
Very Respectfully,
Angelica Romero
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