One in Five Americans Plan to Buy a Home Despite Economy

Despite today’s challenging market conditions, almost 1 adult in 5 plans to buy a home this year in order to take advantage of the $8,000 tax credit recently passed by Congress in the administration’s economic stimulus package.

“It’s not all doom and gloom. We found Americans are optimistic about homeownership despite concerns,” said Move, Inc., CEO Steve Berkowitz. “They’re doing everything they can, from reducing discretionary spending to pay their mortgages, to planning to take advantage of the administration’s new program to stop foreclosures. They’re also working with lenders to modify loans. Even more impactful are numbers that show interest in home ownership is strong as nearly a quarter of all adults plan to buy a home.”

Over half of those planning to buy in 2009 are first-time homebuyers (53.5%), up from 41% of homebuyers in 2008, according to the National Association of Realtors.

While 18.1% of homebuyers do plan to buy this year to take advantage of the $8,000 tax credit, surprisingly the study found that nearly half said they didn’t know about the credit.

Half of all Americans are paying close attention to home values in 2009, with those aged 25 to 34 (61.9%) are paying the closets attention to prices.

“Having the wealth of information on home values available on Realtor.com makes it easy for potential buyers to research and plan their real estate purchase as they begin their search. In fact, the average buyer researches properties online for 10 months before contacting a Realtor(R). So quick and convenient access to information is critical, especially in today’s highly competitive environment,” said Errol Samuelson, president of Realtor.com.

“If you’re basing a real estate decision on old or out-of-date information, you risk making a poor decision with potentially significant financial consequences,” explains Samuelson. “Providing current and detailed information drawn directly from a local MLS, in conjunction with our 15-minute update program, educates buyers and sellers on market conditions and results in more productive conversations with Realtors.”

The survey also uncovered a changing attitude towards home ownership. About two-thirds (62.5%) consider their home primarily a place to live as opposed to an investment which is a strong swing away from the traditional line of thought where most people in the past focused on their homes as an investment.

What do most adults surveyed value value most in a home? More space (10%) over a list of other options, including, energy saving features, bigger or nicer yard, a better location, or updated amenities.

The author Hank Bailey is real estate broker in the state of Georgia. He blogs at athensproperties.wordpress.com/.