Realtors: Price, Rates Drive Buyers

The national Realtor.com Homeownership Survey found the same motivating factors for homebuyers that are coming back into the market that a similar survey from its California affiliate found. According to the survey, over two-thirds of potential buyers are being lured into the market by affordability; low interest rates are also being cited by respondents. Nearly 20% of the potential buyers are being motivated by foreclosed property being sold at bargain prices; over 15% believe prices are as low as they will go, while a similar number state they want to buy before interest rates rise. Just fewer than 15% of first-time buyers said the Obama administration tax credit is bringing them into the market. The survey asked participants if they or someone they knew was facing foreclosure and what steps did they take: 20% said they haven't done anything; 22% have not done something now but plan to take advantage of the Making Homes Affordable program before it expires; 37% talked to their lender about a modification; 44% asked about a refinance; and 26% have or are planning to refi in the Making Homes Affordable program. Only 28% said they believe the program is working, compared with 41% who said it isn't.