I saw on MSNBC the other day that a recent poll by Realtor.com revealed that more than half of those parties interested in purchasing a new home are not ready to pull the trigger and buy yet. Their biggest concern was that they would lose their job and be unable to support the new home. Other fears potential homebuyers expressed in the poll was that they were bothered by falling home prices and worried that they would be unable to sell the home they were currently living for enough money.
In dealing with my customers and clients, I too have found that tight credit restrictions are keeping many would-be buyers out, but even those who can qualify are skeptical that prices will continue to drop. And, although many see that with foreclosures dominating some markets there are great deals to be had in the market right now, they are still not willing to take on such a large financial risk. Additionally, many perceive purchasing a foreclosed property as a lot more complex than other transactions.
Realtor.com also reported that the poll found that most Americans are cynical regarding the success of the Governments plan to cure the foreclosure crisis. While about 27% of those polled did feel the plan was working, the remaining people did not believe it was working, or didnt know if it was working.
What do these consumer impressions of the real estate market result in? I am finding that, at least for now, many purchasers as well as sellers are choosing home rental over home buying.
There are many advantages to renting a home over buying: someone relocating to a new area can get to know the area and find the right fit without jeopardizing their financial condition, and renting further gives families needing to move into a larger home the ability to do so much sooner than purchasing currently allows. Those who might otherwise sell their home are also finding renting an attractive option, as it allows their property to recover its value as the real estate market improves. I foresee that, until consumer confidence increases for the home buying market, renting will continue to be a favored option for home buyers and sellers alike.