Despite their confidence in the current economy, many consumers are wary about buying a home, according to the “Housing Opportunities and Marketing Experience” (HOME) survey conducted by National Association of Realtors (NAR). The current shortage of home listings, as well as the spike in mortgage rates, has crushed the spirits of many would-be buyers. Even if they could find a home amid all the competition, non-homeowners are nervous about qualifying due to their income uncertainty, bad credit scores, debt, and not knowing what steps to take to qualify in the first place.
NAR President Elizabeth Mendenhall recommends that anyone planning on becoming a homeowner should contact a lender and discuss their finances as soon as possible. This way, they will know what they can afford and what they can do to improve their financial situation.
- The majority of consumers feel confident about the economy, but are doubtful that it is now a good time to buy a home.
- A limited amount of available homes on the market has led to a jump in home prices, which is making it difficult for buyers to find affordable housing.
- Non-homeowners are worried that they will not be able to save enough money for a down payment as many have limited income, student loan debt, health expenses, and rising rents.
- NAR President Elizabeth Mendenhall recommends that anyone thinking about owning a home in the future should consult with a lender to see what they can afford and what steps they can take to improve their finances.
In the first quarter of this year, consumer confidence regarding their personal finances and the economy rose, yet this confidence is not translating to optimism that now is a good time to buy a home, according to the National Association of Realtors (NAR) “Housing Opportunities and Marketing Experience” (HOME) survey.
In fact, positive feelings that it’s a good time to buy a home is at its lowest share in the past two years, and even lower among renters. The strongest concentration of those that did feel positive about buying are homeowners in the South and Midwest where housing is more affordable.
The survey also indicates that owners feel positive about selling, while non-homeowners are feeling anxious about qualifying for a loan and saving for their down payment.
View the original article at The Real Daily