Affordability Motivated Buyers in 2010
A Weichert, REALTORS® survey of 1,261 home buyers who made purchases between July 1, 2010, and Dec. 31, 2010, reveals that 28 percent were motivated by “favorable financing,” down from 31 percent in 2009 but up from 14 percent in 2008.
While 26 percent of those polled in 2005 said the desire to own a home and stop renting were motivating factors, very few respondents said the same in 2010. The survey reveals that 12 percent made home purchases because they had to relocate, 28 percent because they wanted a bigger home or more living space, and 11 percent because of potential financial growth.
Dominick Prevete, regional vice president for Weichert, says, “The takeaway is that home buyers who still see long-term potential financial growth in housing are more motivated today by the value presented by very low interest rates and discounted prices than they were five years ago. I think we are back in a period of a more realistic view of home ownership.”
Source: “Survey: Affordability Top Reason for Home Buying in 2010,” The Wall Street Journal, M.P. McQueen (01/18/11