SAN DIEGO, CA, Nov 12 (MARKET WIRE) --
Twenty nine percent of recent buyers purchased a home in foreclosure or
through a short sale, according to the latest Realtors(R) Confidence
Index. Realtors(R) who participated in the survey are also concerned
about a growing number of foreclosures and the hurdles buyers face in
short sales.
The RCI is a key indicator of housing market strength based on a monthly
survey of more than 50,000 Realtors(R); in a typical month there are more
than 3,000 usable responses. Practitioners are asked about their
expectations for home sales, prices and market conditions; they also share
their insights regarding buyer preferences and financing options and how
those factors are influencing real estate markets nationwide.
"Realtors(R) are on the front lines with buyers and sellers in today's
market and have valuable insights into real estate trends," said National
Association of Realtors(R) President Charles McMillan. "The volume of
distressed sales that our members are reporting underscores the importance
of the recent tax credit extension. By putting cash in the hands of
financially healthy home buyers, the credit will continue to help draw
down inventory and stabilize home prices to encourage a strong and
sustainable housing recovery."
Despite the high volume of distressed sales, Realtors(R) report that their
buyers encounter various challenges associated with these types of sales.
Buyers who present a short sale offer can wait months before hearing
whether their offer will be accepted. In addition, Realtors(R) are also
seeing increased competition for foreclosed properties, and multiple bids
are sometimes driving sales prices over list prices.
Aside from the demand for short sales and foreclosed homes, today's buyers
are increasingly interested in a home's energy efficiency and proximity to
transportation corridors, reflecting concerns about rising energy costs.
Many Realtors(R) are seeing a growing preference among buyers for smaller
homes, as people look to downsize and cut expenses.
Mortgages insured by the Federal Housing Administration are the primary
lending vehicle for many buyers; 24 percent of recent buyers used an FHA
loan to finance their purchase. However, more than one in five recent
buyers -- 21 percent -- paid all cash.
The National Association of Realtors(R), "The Voice for Real Estate," is
America's largest trade association, representing 1.2 million members
involved in all aspects of the residential and commercial real estate
industries.
Information about NAR is available at www.realtor.org. This and other news
releases are posted in the Web site's "News Media" section in the NAR
Media Center.
REALTOR(R) is a registered collective membership mark which may be used
only by real estate professionals who are members of the NATIONAL
ASSOCIATION OF REALTORS(R) and subscribe to its strict Code of Ethics. Not
all real estate agents are REALTORS(R). All REALTORS(R) are members of
NAR.
For further information contact:
Stephanie Singer
202/383-1050
Email Contact
Copyright 2009, Market Wire, All rights reserved.
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