Survey suggests why buyers are sitting on sidelines

Twenty-seven percent of Americans say they plan to buy a home in the future (with most saying in two or more years), and only two percent say they plan to purchase a home in the next 12 months, according to a new Move Inc. survey of 1,000 American adults.

So why are so many buyers continuing to wait on the sidelines when home affordability is high and interest rates are at or hovering near record lows?

Nearly 35 percent of those surveyed say their inability to get credit or find affordable credit are the main reasons why they’re putting off purchasing a home.

About 23 percent of those surveyed say they are delaying buying a home because they are concerned about the real estate market in their local area, particularly with concerns over the future of home values, the economy and jobs, as well as difficulty in saving for a down payment.

“Perceptions as much as the realities of home ownership are standing in the way of boosting demand for housing,” said Errol Samuelson, chief revenue officer of Move Inc. “Concerns that the economy will continue to put jobs at risk and that prices won’t rise near term are keeping buyers on the sidelines as much as the difficulty they’re having in getting credit or saving for down payments.

“Until these concerns are resolved, we expect both buyers and sellers to remain on the sidelines.”