Layoff Worries vs. Buyer Incentives
Worries about layoffs and their tendency to drastically interfere with one's ability to make a monthly mortgage payment don't seem to be burdening first-time buyers as much as they weigh upon existing homeowners.
About 18 percent of people who consider themselves first-time home buyers said they plan to make a purchase this year so they can take advantage of the new $8,000 tax credit, according to an early-March survey commissioned by Move Inc., the company that operates a listings Web site for the National Association of Realtors. Among all surveyed, first-timers and repeat customers alike, 5.8 percent said they planned to buy within one year; and another 13 percent said they planned to buy in the next two years.
The survey revealed a world of worry, though, among current owners. A recent job loss in the household is causing 27 percent to fear they may default on their loan. Another 29 percent worry that a job loss in the future could force them to fall behind on their mortgages. Another 26 percent worried that they might default because they owe more on their home than the homes is worth.
Many of those current homeowners, of course, are stuck with homes they bought at top dollar, often with risky loans that carry interest rates that are much more burdensome than today's low rates. While first-timers still face the uncertainties of layoffs, they're not chained in place by choices made during the boom years.
What do you think? Are these survey numbers on the mark compared with what you see in your community?
Posted by: kingstowne_renter | March 24, 2009 9:33 AM | Report abuse
Posted by: jillkipnis | March 24, 2009 8:54 PM | Report abuse
Posted by: DpnStl | March 29, 2009 9:21 PM | Report abuse
The comments to this entry are closed.