Copy for Real Estate Guide Column for 10-29-10

REAL ESTATE PATTERNS
By Ken DuVall

BUYING A HOME MAKES GOOD SENSE

Nearly 8 of 10 respondents believe buying a home is a good financial decision, despite ongoing challenges with the economy and housing market. That’s according to the 2010 National Housing Pulse Survey, an annual report released by the National Association of Realtors. The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in 8 years of sampling, with 70% of Americans saying that job layoffs and unemployment are a big problem in their area. So what else is new?!

“The real issue facing the nation’s economy right now is that many Americans can’t find meaningful work to support their families,” said NAR President Vicki Cox Golder. “While job recovery is what’s needed right now to get the economy and housing market back on the right track, owning a home continues to be part of the American Dream and one of the best long-term investments in your future.”

Despite economic uncertainty, 68% of those surveyed still believe now is a good time to buy a home. While that number is down from last year (75%), it’s up from 2008 (66%) and 2007 (59%). Lower home prices and record-low mortgage interest rates are attracting buyers. More than 25% of renters said they are thinking about buying a home than they were a year ago. Sixty-three percent of renter respondents said that owning a home is a priority in their future, and 40% said it was one of their highest priorities. Lower home prices have improved affordability. Demand never stops.

Despite improved affordability, 79% of respondents still consider having enough money for down payments and closing costs to be among the biggest obstacles to buying a home. Another is a lack of confidence in their ability to be approved for a loan, reported by 73% of respondents. It’s a real challenge to get a loan anymore.

The good news is that Americans are seeing more stability in the real estate market. Nearly 70% believe home values have stabilized in their area. The same number expects home sales to remain about the same through the end of the year. But there are still many issues in play here.
Thirty-six percent of respondents cite the recession, loss of jobs, and the poor economy as the main reason for the ongoing foreclosure dilemma. While 70% say it’s harder to sell a home in their area today than it was a year ago, it’s less of a concern from last year when the number was 10 percentage points higher, the result of somewhat lower home inventories now.

The 2010 National Housing Pulse Survey was conducted by American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program among 1,209 adults living in the 25 most populous metropolitan statistical areas. The study has a margin of error of plus or minus 3.1 percentage points. All things considered, I’d say we’re looking more good than bad at this point.

Ken owns Ken DuVall & Associates, REALTORS at 3rd Ave. & Mangrove in Chico. Ken was the 2001 President of the Chico Assn. of Realtors and the 1995 Chico Realtor of the Year. See Chico MLS listings at www.KenDuVall.com and call Ken at 345-3700 for all your real estate needs. Free consulting.