Home Buyers Continue to Worry Over State of the Housing Market

I recently saw a report on MSNBC that more than half of potential homebuyers say they’re still not ready to enter the housing market, according to a poll conducted by Realtor.com. Fear of job loss is the number one reason. Other worries include fear of not selling their current home and that home prices will keep falling.

In my day to day business I am seeing that while more restrictive lending is stopping some would be purchasers from moving forward, even those who are highly qualified to purchase a new home are not rushing to snap up the deals and feel that values will continue to drop. 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 Obama’s plan to alleviate the foreclosure crisis by giving the lending industry $50 billion in incentives to lower borrowers’ monthly payments. While about 27% of those polled did feel the plan was working, the remaining people did not believe it was working, or didn’t know if it was working.

What does all this really mean, though? I am finding that, at least for now, many purchasers as well as sellers are choosing home rental over home buying.   

Renting gives those relocating an option to test out the market and find the right fit, and allows those needing to upgrade a chance to do so much sooner than they might be able to in these current conditions.Home owners are also finding rental over selling attractive, as it allows the real estate market to rebound and their property values to increase.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.   

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