In late 2009 and early 2010, Fannie Mae conducted a national survey of renters and homeowners in regard to the economy and the real estate market. The 2010 survey results were compared to the last survey conducted in 2003 (before the national home prices peaked). Surprisingly, many of the responses did not fluctuate much from seven years earlier.
In the 2010 survey, 64% of respondents indicated that now is a good time to buy a house as compared to 66% in the 2003 survey. Thirty-one percent of respondents indicated it is a VERY GOOD time to buy. Eighty percent of respondents indicated that they believe homeownership is important to our overall economy.
Thirty-seven percent feel that home prices will go up in the next year while 36% feel prices will remain about the same.
Seventy percent of respondents feel that real estate is a “safe investment,” as compared to 74% who think putting money in the bank is a safe investment. Only 17% of respondents feel the stock market is a safe investment. In 2003, 83% of respondents felt real estate was a safe investment.
Additional Findings from the Survey:
• 58% of current renters believe now is a good time to buy a house
• 75% of current renters believe owning a home makes more sense and
• 67% plan to buy a home at some point in the future
• 9 out of 10 homeowners are satisfied with their current mortgage
• Survey respondents cited poor credit (22 percent), their income (19 percent), job security (15 percent) and having enough for a down payment (also 15 percent) as the top obstacles to obtaining a home loan.
When they asked current renters for the major reason to buy a house, these were their answers (they could pick multiple answers):
• 78% said it was a good place to raise children
• 75% said because they would feel safe
• 70% said because you have control of your own space
• 66% said owning a home would be a good way to build wealth
• 54% said paying rent is not a good investment
Are you thinking about buying or selling? Wondering if NOW is a good time? Contact a Nothnagle agent today to get specific market information for your neighborhood and learn how you can get started today.