More Consumers Say It’s a Good Time to Buy HomesSeptember, 4 2008 Source: National Association of Home Builders The University of Michigan’s monthly survey of consumer sentiment asks households to rate buying conditions for homes. The proportion giving a “good” rating started to give way in 2004, as house prices were climbing to unaffordable levels in many areas, and bottomed out in the summer of 2006 as house prices finally topped out at the national level. But the “good” proportion has been on the rise for about two years now, getting up to 71% in August — back to the mid-2005 level. Consumers’ ratings of home buying conditions have been driven largely by house price movements. In August, 65% of consumers cited “low prices” as the key reason for viewing home buying conditions as “good,” compared with only 10% at the end of 2005. Interest rates also can have a major impact on home buying conditions, of course, but rate shifts have had a relatively minor influence on consumers’ ratings during the past two years. Improving consumer views of home buying conditions obviously do not quickly translate into stronger home sales. But the systematic improvements in recent times are laying groundwork for better sales volume a bit further down the line.
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 Our builder showed us how we could get into the school system we wanted and a home that’s flexible enough to accommodate our growing family. We’ll be closer to work, and we’ll also save energy on our utility bills. It’s a win – win for everyone. The kids can’t wait to explore the new neighborhood and we can’t wait to settle in. To think, we almost stayed away from building a new home because we were worried about the mortgage crunch. When we discovered that 99% of homes are not in foreclosure; that made us feel secure in our investment too. |
