This is an excerpt from a July 3 commentary written by the National Association of REALTORS Chief Economist, Lawrence Yun, regarding the results of a national REALTORS survey conducted concerning Buyers:
The most interesting results, from my point of view, were about clients postponing their purchase of a home. The question posed was "In thinking of your most recent potential buyer in 2008, did the client postpone their home buying decision?"
- 50 percent said no, and said the buyer bought in the end
- 23 percent said the potential buyer did not buy, preferring to wait for prices to fall further
- 6 percent said the potential buyer did not buy because of mortgage difficulties
- 4 percent said the potential buyer could not locate that 'perfect' home
- 7 percent said the potential buyer needed to first sell the current home
- 9 percent said the potential buyer changed their mind due to various personal reasons
What is striking is the second bullet point. There are a measurable number of potential buyers who have the financial capacity and mortgage qualifications, yet are refusing to jump into the market because of price decline fears. These hesitant buyers far outnumber the people who are unable to secure a mortgage.
The implication is that once there are signs of market stabilization then we may see a rush of buyers returning to the market. The recovery could be robust rather than tame. It also implies that the homebuyer tax-credit being discussed in Congress right now as part of the housing stimulus bill could make a big impact in drawing buyers to the closing tables.
Interesting, but keep in mind that the real estate market is LOCAL.
