Four Out of 10 Recent Buyers Relied on FHA Loans, Says NAR
Market Wire, December, 2009
According to the most recent
Realtors Confidence Index , 39 percent of recent buyers purchased a
home with a Federal Housing Administration-insured loan. Realtors who
took part in the November survey also reported that the number of
first-time home buyers continued to climb to 51 percent.
“FHA helps provide affordable mortgage financing to homeowners,
particularly first-time home buyers who are so important in drawing down
inventory to help stabilize the current housing market,” said NAR President
Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz.
“These recent survey results reaffirm that, despite its current challenges,
FHA is a critical part of the American housing fabric.”
The RCI results also indicated that distressed sales increased to 33
percent of all home sales last month, and that both investors and
first-time home buyers are competing for these properties. The
preponderance of distressed properties on the market has also influenced
buyers’ perceptions of other homes for sale. Realtors report that many
buyers have pricing expectations that treat every property as if it were in
foreclosure.
In addition, Realtors expressed ongoing concerns with the impact of the
Home Valuation Code of Conduct on recent appraisals. According to some
survey respondents, inexperienced or out-of-area appraisers continue to
rely heavily on sales prices of distressed properties, even when other
comps are available.
“As the first, best source for real estate information, Realtors have
their finger on the pulse of current housing trends, and their knowledge
and experience offer valuable insights into today’s real estate market,”
said Golder. “We know that an economic recovery is not possible without a
housing recovery, and we will continue to work with policymakers at all
levels to ensure that this happens.”
The RCI is a key indicator of housing market strength based on a monthly
survey of more than 50,000 Realtors; in a typical month there are more
than 3,000 usable responses. Participants are asked about their
expectations for the demand for homes, price of homes, and other economic
conditions.
The National Association of Realtors, “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.
REALTOR is a registered collective membership mark which may be used only
by real estate professionals who are members of the NATIONAL ASSOCIATION OF
REALTORS and subscribe to its strict Code of Ethics
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