Americans Are Opting Out Of The Housing Market

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I recently saw a report on MSNBC that more than half of potential homebuyers say theyre still not ready to enter the housing market, according to a poll conducted by Realtor.com. Fear of job loss is the number one reason. Other worries include fear of not selling their current home and that home prices will keep falling.

In dealing with my customers and clients, I too have found that tight credit restrictions are keeping many would-be buyers out, but even those who can qualify are skeptical that prices will continue to drop. And, although many see that with foreclosures dominating some markets there are great deals to be had in the market right now, they are still not willing to take on such a large financial risk. Additionally, many perceive purchasing a foreclosed property as a lot more complex than other transactions.

Realtor.com also reported that the poll found that most Americans are cynical regarding the success of the Governments plan to cure the foreclosure crisis. While about 27% of those polled did feel the plan was working, the remaining people did not believe it was working, or didnt know if it was working.

What do these consumer impressions of the real estate market result in? I am finding that, at least for now, many purchasers as well as sellers are choosing home rental over home buying.

Home rental instead of purchasing allows someone relocating to a new area to get to know the market and test out their different options, and also gives those customers needing to upgrade an ability to do that without having to qualify for a complicated mortgage program. Home owners are also finding rental over selling attractive, as it allows the real estate market to rebound and their property values to increase. In my opinion, until Americans become convinced that the market is changing for the better, renting will become the preferred option for many who would otherwise have purchased a home.

About the Author:
Joyce Kelly is the founder of DenverRentAHome.com, offering to Littleton, Colorado and surrounding areas over 75 years of combined experience in the residential rental and property management fields. DenverRentaHome.com now allows homefounders to post their properties online and prospective tenants can now get pre-qualified online! Visit DenverRentAHome.com for more information or call 303.681.6767.



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