CAMPBELL, Calif. – Nov. 9, 2011 – Candidate positions on housing will be important considerations to 69.6 percent of Americans in the 2012 presidential and congressional elections, according to a new survey released by Move Inc., the oversight company of Realtor.com. This is especially true for Millennials (70.7 percent), the next generation of homebuyers.
According to the survey, 81.7 percent of Americans consider housing a critical piece of the national economic recovery. Nearly three quarters of Americans (73.1 percent) believe conditions for buying a home a year from now will be the same or worse than today, while 23.2 percent expect homebuying conditions to improve.
Helping homeowners avoid foreclosure remains a top housing priority for the next president’s first 100 days in office. One in three (30.9 percent) Americans today think helping homeowners avoid foreclosure should be the next president’s priority in the first 100 days in office. Keeping interest rates low (26.4 percent) ranked second and making more affordable mortgage credit available (14 percent) placed third.
However, views are mixed when it comes to increasing or decreasing the role of government in housing. One in three Americans (31 percent) said the role of government in housing should remain the same as it is today, while one in five (21.3 percent) said it should be increased. Forty-two percent said government’s role in housing should be reduced, especially Americans ages 35 to 64 (56.7 percent). Just over two-thirds (67.4 percent) of Millennials said the president and Congress should reduce or keep the role of government in housing the same.
Other survey results:
• While 27.3 percent of Americans plan to buy a home in the future, only two percent plan to purchase in the next 12 months, and 23.1 percent say they’ve delayed purchasing a home because of the real estate market in their area.
• Three factors – uncertainty about future prices, concern about the economy and jobs, and difficulty saving for downpayments – are causing buyers to delay their purchases, effectively reducing near-term demand.
• 55.1 percent of Americans postponing a home purchase lack money for a downpayment or closing costs. Some 52.5 percent said they’re concerned about their jobs or lack confidence in the economy as a whole. Half (53.1 percent) are waiting for home prices to stabilize or increase. More than one third (34.6 percent) said their inability to get credit or find affordable credit is a reason why they’re waiting to buy.
• Perceptions on affordability have deteriorated in the past 18 months. In March 2010, 45.4 percent said they thought a median income family could afford more than half (50 percent) of the homes for sale in their neighborhood. Today, only 32 percent said they think median income families can afford more than half.
• The number of homeowners who delayed selling a home (17.5 percent) has not grown in the past 18 months, and actually declined slightly (-1.7 percent), which suggests the pending supply of ‘visible’ homes is showing signs of stabilization. However, more homeowners ages 35 to 49 (22 percent) and those making $40,000-$49,000 a year (21 percent) said they’ve delayed selling their home in the past year as compared to other respondents. This may indicate growing families in need of more space are having a difficult time moving up as a result of today’s market conditions.
• Today’s homeowners are less tempted to sell in response to incremental price increases than they were in 2009. Price increases in June 2009 of 20 percent or less would have motivated 61.6 percent of homeowners to sell. Today, however, price increases of 20 percent or less would motivate 55.4 percent. Based on the survey, a 5 percent increase in prices today would motivate 11.7 percent of owners to sell their home.
• 61 percent of those who plan to buy a home say they’d be first-time homebuyers, and 76.6 percent are Millennials. Large majorities of Americans – Millennials included – believe their family must be happy in their home (94.1 percent), that they are very picky when it comes to finding a home (80.3 percent), and that their home defines them; it’s part of who they are (75.1 percent).
• Millennials and older Americans have different perceptions. While 40.9 percent of Millennials think they should spend 30 to 60 percent of their gross monthly income on housing, older Americans (56.4 percent) said they plan to spend less than 30 percent.
• 61.9 percent of Millennials think of their home as a place to live, compared to 24.8 percent who think of their home as an investment. Almost all Millennials (95.3 percent) say they think of their home as a place where they can retreat from the world and relax.
© 2011 Florida Realtors®
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