Housing market now more attractive to Americans
November 06, 2012
Many Americans have been scared to venture into the home-buying market in recent years due to factors such as economic uncertainty and a general fear of operating within the unknown. However, according to a recent study conducted by legal information website FindLaw.com, 30 percent of Americans said they were afraid to buy a house because of the economy, a number that has decreased 33 percentage points since a similar study in 2010.
"Two years ago, the economic situation was driving a lot of potential homebuyers to the sidelines," said Stephanie Rahlfs, an attorney and editor with FindLaw.com. "But today we're finding that the state of the economy is becoming less of a factor in keeping people out of the housing market."
The economy playing less of a role in home-buying decisions
With the economy slowly improving, Americans are more willing to get out their checkbooks and begin to spend. This also goes for the housing market, with the percentage of people saying the current economic situation will make them more likely to buy a home growing slightly. The figure climbed from 8 percent to 11 percent over the two-year period.
"Many factors influence housing decisions, including income, housing prices, proximity to work, job relocations, mortgage rates, ability to sell an existing home, schools, and so on," said Rahlfs. "But it's clear that people's outlook on the economy is now becoming less of a drag on the housing market."
The lower home prices is another thing attracting Americans to reenter the housing market or build their own homes. Through the use of construction software, construction firms can more realistically estimate how much the entire construction of a new home would cost.
Wealthier Americans looking to get involved in the housing market
Homes have not been seen as one of the better investments Americans can make in recent years. While home prices were down, it was unknown if and when the economy would recover. Now homes may be a smart investment since the prices of homes may begin to rise.
"This may be due to some combination of historically low mortgage rates, housing prices that - although rebounding - are still relatively low, and people perhaps feeling more optimistic about the economy in general," said Rahlfs.