Thursday, October 12, 2006

Go-Go Days For Home Prices Are Over

The Go-Go Days for Home Prices are over, but it is still tough for people to buy their first slice of the American dream.

House hunters can benefit by showing patience.

80% percent of Americans believe it is difficult for most first-time buyers to afford a home. Many people (59%) believe the situation is worse now than five years ago.

Younger adults and minorities view affordability more of a problem now for first-time buyers compared with five years ago than do older people and whites.

A third of U.S. homeowners with mortgages spent 30 % or more of their household income last year on housing costs. These costs, which include mortgage payments, taxes, insurance and utilities, are usually considered excessive if they top 30 % of household income.

Nationwide, median home values jumped 32 % from 2000 to 2005.
A lot of home prices are out of this world.

Nearly the same amount (45%) believed their market was priced about right. Only 5 % though their market was underpriced, with the remaining few having no opinion.

Looking out over the next two years, 49 percent of people surveyed predicted that housing prices in their area will go up, while 18 % thought they would go down. Thirty-two percent believed prices would stay the same. The rest did not voice an opinion.

People who are interested in buying a home in the future worry most about interest rates going up. Eighty-four percent said that was a concern.

Slightly fewer (78 %) say they worry about paying more than the fair market value for their abode. 65 % fret about being able to afford their mortgage payment, while 62 % fear that the home might drop in value. 58 % worry that they won‘t find enough money for a down payment.


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