Over two-thirds of potential homebuyers and sellers believe the real estate market and property values will recover in the next year or two, a survey from Prudential Real Estate and Relocation Services Inc., Newark, N.J., found.
Separately, two-thirds of the agents affiliated with the Real Living franchise said they think this spring's home buying and selling season will be more active than 2009's as both prices and interest rates are at or near record lows.
The Prudential survey, conducted in late January, shows an increase in the number of people who had a positive view of the market back in April, which was only 48%. Respondents consisted of 1,253 Americans between 25 and 64 who were in the market shopping for a home. And 86% of this group believes that housing is still a good investment in spite of the market volatility in recent years.
The survey also found that six in 10 are optimistic about buying given the momentum of the economic recovery.
James Mallozzi, chief executive of Prudential Real Estate and Relocation Services, said, "A key take away from the survey is although consumers recognize that it is a good time to buy, they are concerned about their ability to sell their homes. That is one of the reasons the market is still struggling to recover."
For those on the fence about moving into the active phase of home buying, 77% said concerns about selling an existing home was holding them back. Other factors are getting a fair price for their home (cited by two-thirds of the respondents) and emotions (cited by 58%).
Surprisingly, 78% of those who sold their home in the past year were satisfied with the sale, 32% said they were happy with the final sales price, while 46% were grateful they were able to sell given the market conditions.
The survey found that 45% of those considering buying were looking to trade up. Of that group, 64% wanted more space or property, 49% said a nicer house and 41% wanted a better neighborhood. At the other end of the scale, just two in 10 wanted to trade their current property for a smaller one.
In the Real Living survey, company president Harley E. Rouda Jr. said his agents feel there is a window of opportunity now because two-thirds of them believe interest rates will rise next year.
When asked what is the greatest challenge for themselves or their company right now, 46% said attracting more buyers, followed by 26% saying their challenge is helping their customers find financing, while 20% said keeping their seller clients happy. Only 8% said problems with getting properties to appraise is their challenge.
As for their marketing strategy, just under half plan to employ social media, while another 39% said they will spend money for online advertising. Blogging will be used by 10% while print ads will be used by 2.6%.
