New Poll Shows Potential Homebuyers Still Wary

July 11, 2009 - MSNBC recently reported 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 (16 percent) and that home prices will keep falling (8 percent).

Tight credit restrictions are keeping many would-be buyers out, but even those who can qualify are skeptical that prices will continue to drop. Also, many consumers recognize that there are great deals to be had in the market right now – with foreclosures dominating some markets – but they’re still not willing to take on such a large financial risk and perceive purchasing a foreclosed property as “a lot more complex” than other transactions, according to Errol Samuelson, president of Realtor.com.

The poll 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. Only 28 percent of those surveyed said the plan is working, compared with 41 percent who said it isn’t and 27 percent who didn’t know.

Until we see a big shift, renting vs. buying continues grow as an attractive option for both homeowners and potential homebuyers alike. Homeowners who have to leave their current home due to relocation or similar can cover their mortgage or even bring in revenue and potentially avoid foreclosure while homebuyers can wait out the market while living in an a more affordable property without the financial risk.

- Joyce Kelly, Owner and Co-Founder, Denver Rent a Home

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