Many First-Timers Considering Buying a Home This Spring

In a survey for Century 21 Real Estate fielded earlier this month among prospective first time home buyers who indicated they were likely to purchase a home in the next two years, a majority — 78% — said that now is a good time to buy a home, despite widespread concern about the economy. Of those responding to the online poll, 68% said that now is a better time to buy than six months ago.

Prices emerged in the online survey as the primary driving force for prospective first-time buyers, with 85% saying they consider current homes prices affordable and 73% saying that taking advantage of current pricing would be a major factor in their decision to buy.

However, 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%).

“Current pricing, rates and incentives — such as the first time home buyer tax credit — provide tremendous opportunities for first-time home buyers to get into the market,” said Tom Kunz, the president and CEO of Century 21.

“Our research shows that while consumers still have concerns about the future of the economy, many are actively considering their options as we move into the spring selling season,” he said.
More than three-quarters of those polled — 77% — said they are more likely to buy a home in the next six months because of the $8,000 first-time buyer credit.

Perceptions about the residential mortgage market remain a key concern for potential first-time home buyers, the survey found.

Seventy-two percent considered current mortgage rates affordable and 62% recognized that rates are lower than they were a year ago. However, 75% said they believe it is difficult to get a home loan right now and 74% think it is harder to get a loan than the same time last year.

“Traditional mortgage investors, Fannie Mae, Freddie Mac, FHA and VA are receiving significant financial backing from the federal government, keeping interest rates low and mortgage funds available for qualified buyers,” said Marshall Gayden, senior vice president of Century 21 Mortgage.

“Home buyers who have a stable job history of at least two years, solid credit (620 and above) and downpayment money that can be documented (3.5% on FHA loans) are well positioned to secure a mortgage in today’s credit environment,” Gayden said.

Prospective first-time buyers also indicated 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% — of potential buyers rated their understanding of the process as only “fair” or “poor.”

“Between home loans and 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 Kunz.

Among other key findings of the survey:

• Bargains in the marketplace are providing additional options for buyers to consider.
• Fifty-six percent 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.
• When asked to rate the features that they look for when choosing a home, price is the primary consideration, with 87% saying it is “very important,” followed closely by neighborhood safety (80%) and the condition of the home (71%).
• Having enough money for a downpayment is a top concern, with 46% saying they are “very worried” about the issue.
• Most respondents — 86% — reported being in the market for single-family homes.

Beach to Bay Real Estate Center is a full service real estate brokerage servicing buyers, sellers and renters at the Delaware beach areas. We handle all forms of real estate, including residential, commercial, and lots and land, in addition to bank owned, short sales and auctioned properties and representation; mortgage needs including refinances, new home purchases, second homes, first time homebuyer programs and reverse mortgages; maintain professional relationships with local settlement attorneys, insurance companies, contractors, and inspection companies; and are affiliated with a preservation and restoration company. Beach to Bay services all of Sussex County, and southern Kent County, with a strong focus on the beach resort areas of Rehoboth Beach (19971), Lewes (19958), Bethany Beach (19930), Dewey Beach (19971), Milton (19968), Millsboro (19966) and more.