Description

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 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. They are unwilling to take on a large financial risk in the current economic environment even though foreclosed properties are providing great deals to those who can buy. Furthermore, many concerned customers feel that purchasing foreclosed properties is much more confusing and complicated than a standard sale.

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 is the end result of all this? In my business , I am seeing an increased interest from both potential sellers and buyers in home rental rather than traditional sales and purchase.

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. Potential sellers are choosing to rent instead of sell, as well, in order to allow the real estate market to recover and their values to rise. Until there is a real shift in the market and consumer confidence, renting will continue to be an attractive option for many would be purchasers.

Tags: property, real estate
Stats: 427 total views, 1 so far today

 Email This Post  Print This Post

Item Location

Images

There are no images