Americans Still Worried, But Many Are Ready To Re-Enter The Housing Market

Americans are still very worried about the economy — particularly job loss and foreclosure — but a recent survey suggests that a good number are ready to re-enter …

Americans are still very worried about the economy — particularly job loss and foreclosure — but a recent survey suggests that a good number are ready to re-enter the housing market. Considering about half of the people surveyed had no idea that there was an $8,000 tax credit available to first time homebuyers, as word of the program spreads it is possible even more first time homebuyers could show interest. For more on this, read the following article from Property Wire.

Half of Americans are concerned that they or someone they know will face foreclosure this year but many of them still plan to buy a property in the next five years.

According to a new survey from Move Inc, 23 percent of adults, many of them who would be first time buyers, want to purchase. This shows that there is demand among this sector, the report says.

Of those who want to buy a property, 5.8 percent said they want to do so in the next 12 months, 12.8 percent in the next two years and 11 percent in two to five years.

There are also changing attitudes to buying a property. The survey found that about two thirds of property owners now consider their home primarily a place to live as opposed to an investment.

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The Move survey also found nearly one out of five homeowners plan to take advantage of the US administration’s new program to help prevent foreclosures. While wading the waters of a severe economic downturn, 21 percent of all homeowners with a mortgage contacted a lender to restructure their loan over the past year.

The survey also found that 18.1 percent of homebuyers plan to buy this year in order to take advantage of the $8,000 tax credit granted under the Economic Stimulus Plan. But nearly half said they didn’t know about the credit and 29.3 percent said it wasn’t large enough for them to act right now.

Opinion is split over whether the US government is doing enough to stabilize the property market, with 46.2 percent answering yes and 43.8 percent indicating no.

Unemployment is the driving factor causing many Americans to fear foreclosure. Over 27 percent of adults feel they or someone they know may default on their mortgage due to recent unemployment, future unemployment or because they owe more on their home than it’s worth.

Determined to remain in their homes, 72 percent of adults have reduced spending in the past year in order to make monthly mortgage or rent payments, mostly by cutting discretionary spending such as holidays, entertainment and eating out.

Regardless of age, most Americans are cutting spending back from some aspect of their life to pay housing costs, according to the survey.

But it is not all doom and gloom, according to Move’s CEO Steve Berkowitz. "We found Americans are optimistic about homeownership despite concerns. They’re doing everything they can, from reducing discretionary spending to pay their mortgages, to planning to take advantage of the administration’s new program to stop foreclosures," he said.

This article has been reposted from PropertyWire. View the article on PropertyWire’s international real estate news website here.

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