Great News From Nationwide First-time Buyer Survey

The national newswires recently picked up on some great news for the real estate industry, and hopefully it’s the harbinger of more good news. Century 21 Real Estate LLC, announced the results of their recently commissioned first-time home buyer survey, and reported that more than three-quarters (78%) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy. Out of 1,000 prospective U.S. first-time home buyers surveyed in early March, 68% believe now is a better time to buy than six months ago.

Prices are the driving motivation for potential first-time home buyers with more than eight of ten first-time home buyers (85%) saying they consider current home prices affordable and 73% stating that taking advantage of current prices is a major factor in their decision to buy. Interestingly, potential first-time buyers are still split between "being willing to consider an offer now" (42%) and "waiting for prices to go down before they seriously consider making a purchase" (48%).

Among the survey’s other key findings:
56% of potential first-time home buyers are considering purchasing a foreclosed or short sale home, and 63% are open to purchasing either a "fixer-upper" or "as-is" home. Bargains in the marketplace are providing additional options for buyers to consider.
Price is a primary consideration with 87% saying this feature is "very important," followed closely by neighborhood safety (80%) and the condition of the home (71%).
Having enough money for a down payment is a top concern of potential first-time home buyers as nearly half (46%) said they are "very worried" about the issue.
86% of respondents are in the market for a single family home.
77% of potential first-time home buyers say they are more likely to buy a home in the next six months because of the $8,000 first-time home buyer tax credit offered in the American Recovery and Reinvestment Act of 2009.

Understanding the Buying Process

Prospective first-time home buyers also indicate that there is a real need for someone who can provide accurate and reliable information while they look for a home. When asked about the real estate transaction process, more than half (59 percent) of potential buyers rated their understanding of the process as only "fair" or "poor."
"Between home loans, the closing process and understanding the new government stimulus, real estate professionals play a vital role in working with first-time home buyers to help them navigate the current market," said Tom Kunz, Century 21 President and CEO. "Every individual situation is different, and consumers should use their REALTOR® as a trusted advisor to seek opportunities, get educated on the process and make informed decisions."

For more information on this comprehensive first-time home buyer survey, check out the FMLS page on www.facebook.com/pages/Atlanta-GA/FMLS-First-Multiple-Listing-Service/74279281544, where FMLS continually posts the latest good news in real estate. Access to the full article referenced above is also available on our Facebook fan page.
Portions of this article were excerpted from the January 8, 2009 press release from Century 21 Real Estate LLC, Parsippany, NJ: Century 21 Real Estate First-time Home Buyer Survey Reveals Increasing Demand Despite Concerns About the Economy.