Downpayment, Closing Costs Still Greatest Obstacles to Homeownership, NAR Survey Shows

WASHINGTON, DC, Jul 09 (MARKET WIRE) --
Most Americans still consider having enough money for downpayment and
closing costs to be the biggest obstacles to buying a home. That's
according to the "2009 National Housing Pulse Survey," an annual survey
released today by the National Association of Realtors(R).

The survey, which measures how affordable housing issues affect consumers,
also found job security concerns to be the highest in seven years of
sampling. Two-thirds of Americans think job layoffs and unemployment are a
big problem; eight in 10 cite these issues as a barrier to homeownership.

"Homeownership is an investment in your future; however, saving for a
downpayment and closing costs is still too great of an obstacle for 82
percent of house hunters looking to take advantage of the current market,"
said NAR President Charles McMillan, a broker with Coldwell Banker
Residential Brokerage in Dallas-Fort Worth. "Monetizing the $8,000
first-time buyer tax credit for downpayment or closing costs on
FHA-insured mortgages is a positive first step. Our hope is that the tax
credit will be extended and expanded to all home buyers and will help
bring stability to the housing market and enable more Americans to
achieve the dream of homeownership."

Despite the challenges with the economy and housing market, 83 percent of
Americans still believe buying a home is a good financial decision.
Three-fourths of those surveyed also believe now is a good time to buy a
home, a number that has increased steadily the past two years. In fact,
one-third of renters are thinking more about buying a home than they were
a year ago.

While Americans are seeing more stability in the real estate market,
uncertainty persists. The number of those who feel buying and selling
activity has stabilized or stayed nearly the same has grown significantly,
from 18 percent last year to 26 percent this year. However the majority
(58 percent) report that activity in their market has slowed.

Regarding home sales, nearly eight in 10 say it's harder to sell a home in
their area today than it was a year ago, despite the fact that nearly
three-fourths of respondents say home prices are less expensive. Large
home inventories could be to blame; 44 percent cite concerns about the
high number of homes and condos for sale in their area.

While nearly three-fourths of Americans are concerned about the local drop
in home values, respondents expect to see more stability in the near
future. Nearly seven in 10 expect local home prices to remain about the
same in the next three months; only 18 percent expect prices to further
decrease. The drop in prices has improved affordability, and consequently,
concerns about the lack of affordable housing are the lowest they've been
in seven years of polling -- 34 percent say it's one of their biggest
worries, down from 41 percent two years ago.

Foreclosures remain a real concern among survey respondents. Slightly more
than half (51 percent) say foreclosures are a big to moderate problem in
their area. However, the rate of foreclosures is generally seen as
stabilizing; 41 percent say the rate of foreclosures in their area is
about the same as last year.

Ninety-two percent of respondents said neither they nor members of their
immediate family have experienced a foreclosure in the past year, yet it
is still a personal concern for many. One in five respondents said they
are very or fairly worried that they will have difficulty making their
mortgage payments over the next year. Thirty-two percent say it's a big
or moderate worry that they, or a member of their family, may have their
home repossessed or foreclosed because they are unable to pay rising
monthly mortgage payments.

In 2008, more than half of respondents (54 percent) were open to the
federal government taking a more active role in overseeing mortgage and
lending practices -- the number dropped this year to 47 percent. This
could be because 42 percent of Americans believe the country is back on
the right track, more than double the number last year (16 percent).

Regarding financing, seven in 10 Americans cite a lack of confidence in
their ability to be approved for a home loan as an obstacle to
homeownership. The same number also say that banks are making it too hard
to qualify for a loan (71 percent) and that fewer mortgage options offered
by banks have made it harder for them to buy a home (71 percent). The
perception of qualifying for a loan as a huge obstacle is especially high
among minorities.

"Home buyers need protection from risky lending products but also need
access to mortgages at a reasonable cost. While there has been some easing
of credit in the mortgage market, the availability of credit continues to
be an issue for many qualified home buyers," said McMillan.

The "2009 National Housing Pulse Survey" is conducted by American
Strategies and Myers Research & Strategic Services for NAR's Housing
Opportunity Program. The telephone survey was among 1,250 adults living in
the 25 most populous metropolitan statistical areas. The study has a
margin of error of plus or minus 3.1 percentage points.

NAR's Housing Opportunity Program, www.realtor.org/housingopportunity, was
created in 2002 to encourage local Realtor(R) associations to create
initiatives aimed directly at increasing housing opportunities available
to consumers and making affordable housing more readily available in their
communities.

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 News Media section. Statistical data in this
release, other tables and surveys also may be found by clicking on
Research.

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:
Sara Weis
202/383-1013
Email Contact

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