A recent poll conducted by our parent company, Century 21, indicated that first-time homebuyers believe prices will increase by this time next year. That is not unexpected considering most of the first-time homebuyers out there are seeing how tough it is to get into a house. There are multiple offers on almost every entry level home. I have clients that have written more than 15 offers with no luck. And these were strong, over-asking price offers. So their perception is based on supply and demand.
The only variable they are not seeing is the “looming inventory” that may be on its way. Because of some Government intervention, most of the “distressed property” inventory has been held back. These homes have to be eventually sold and cleared off the banks books. When is it going to happen? No one really knows! But we are more likely to see inventory start to loosen over the next year and that should help level off pricing.
The following article was put out by the National Association of Realtors:
First-Time Home Buyers, Sellers Optimistic
More than 48 percent of first-time buyers expect home prices to increase by this time next year, according to a survey by Century 21 Real Estate.
The survey posed questions to people who had bought or sold a home in the last year.
Sixty percent of first-time home buyers say they didn’t understand the process of buying a home, and more than 85 percent of both first-time buyers and sellers said that using a real estate professional was important.
The top three skills valued in a real estate professional by both buyers and sellers were knowledge of the area, trustworthiness, and responsiveness.
More than 80 percent of buyers believe now is a good time to buy a home. First-time home buyers rated these three factors as the most influential in their decision:
• Current housing prices: 66 percent
• Home Buyer tax credit: 63 percent
• Low loan rates: 60 percent
In choosing a home, 95 percent of first-time home buyers thought price was the most important consideration, but 90 percent were also very concerned about neighborhood safety.
About 54 percent of first-time sellers think home prices are more affordable now than they were this time last year, and 50 percent were selling because they were purchasing a property they saw as more attractive and better suited to their needs.
Source: Century 21 Real Estate LLC (04/21/2010)
Here are some homes that may appeal to first-time homebuyers looking in Fountain Valley:
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Posted In Real Estate
This entry was posted on Friday, April 23rd, 2010 at 2:57 pm and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.