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.
I have also noticed this reluctance among my customers, and while restrictive credit is prohibiting some possible buyers from taking action, even those folks who could easily get a mortgage loan are concerned that prices will continue to decline. Furthermore, as many of the best deals in the marketplace are foreclosed properties, new homebuyers are constantly reminded that purchasing a home is a big risk financially in these troubling times. And a lot of consumers believe that buying a foreclosed property is much more complicated than a straight purchase.
The poll by Realtor.com also found that Americans generally are skeptical about Obamas plan to alleviate the foreclosure crisis by giving the lending industry $50 billion in incentives to lower borrowers monthly payments. Only 28 percent of those surveyed said the plan is working, compared with 41 percent who said it isnt and 27 percent who didnt know.
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.