CAMPBELL, Calif., April 13 /PRNewswire-FirstCall/ -- According to a
new Move, Inc., survey released today, interest in real estate as
an investment has more than tripled in the past year. In
fact, 17.2 percent of potential home buyers today say they plan to
purchase a home in the near future as an investment compared to
just 5.6 percent in March 2009.
The survey also found just over ten percent (12.3%) of Americans
planning to purchase investment property in the near future say
they will pay for the property using 100 percent cash, and 12.8
percent will use cash for more than 50 percent of the purchase
price and finance the rest. Almost half (49.2%) say they will buy
the property with less than 50 percent cash down and finance the
remainder. The U.S. Census Bureau reported that one in three
U.S. homes are owned free and clear, without a mortgage.(1)
Nearly half of these potential real estate investors (46.5%) say
they plan to own the property for six or more years, 16 percent
expect to hold the property between two and five years, while 10.6
percent plan to own the property between six and 24 months.
While interest by potential home buyers in purchasing a
foreclosure to live in themselves has dropped 31.1 percent in the
past five months to 26.5 percent, this newest Move survey found
interest in purchasing a foreclosure as an investment is on the
rise. In fact, interest in purchasing a foreclosure as an
investment to fix it up and resell it rose from 11.3 percent in
October 2009 to 16 percent in
March 2010, a 42% increase.
ECONOMY AND LIFESTYLE NEEDS TRIGGER TRANSACTIONS WITH BUYERS
AND SELLERS
The Move Homeownership survey also found approximately half
(49%) of all homeowners would buy another home today if they could
sell their current home for what they paid for it or more.
This is especially true for homeowners ages 25 to 34
(68.2%).
Some of the most important reasons influencing homeowners'
decisions to sell their current home with the intention of
purchasing another include the need to lower monthly expenses
because of financial hard times (25.4%), their growing family needs
more space (20%), or the desire for their children to attend a
better school (14.1%). Moving closer to important daily
conveniences (12.3%) or work (10.9%) and the desire to improve
their lifestyle by purchasing a nicer or larger home because
they're doing well (10%) were also among the most important reasons
homeowners would purchase a different house once they sell their
current home.
"Real estate and housing today face many of the same challenges
other major industries are experiencing as a result of our national
economy," says Move Chief Revenue Officer, Errol Samuelson. "Concerns around
employment and their overall economic situation are causing many
people to wait until the economy improves before they commit to one
of the largest purchases they'll most likely make in their lives.
The findings of this newest survey make it clear the desire
and motivation to be a homeowner remains strong, and as the economy
continues to strengthen and improve, so will the housing
market."
PERCEPTIONS ON AFFORDABILITY IMPROVE, FIRST-TIME HOME BUYERS
PREPARE TO BUY
Despite today's challenging economy, demand for home ownership
remains strong and first-time buyers make up a significant number
of all potential buyers. One in five consumers (21%) report they
plan to purchase a home in the next 12 months to five years, with
7.9 percent planning to purchase in the next two years. Of
those planning to purchase a home in the near future, half (50.7%)
are first-time buyers, with men (55%) somewhat more interested in
entering the housing market as a first-time buyer than women
(45%).
The survey also found that while housing has become more
affordable in the past nine months, most Americans are still
unaware of how affordable homes are today. Based on survey
results, 41.5% of Americans think a family making the median income
of $52,029(2) can afford nearly half
(45.7%) of all the available homes for sale in their area. In
June 2009, more than three-quarters
(76.4%) of Americans said they thought a family earning the
national median income could afford 50 percent or fewer of the
homes for sale in their area.
In fact, a median income family today can afford approximately
70 percent of the homes for sale on the Move Network, the leader in
online real estate.(3)
DREAMS DELAYED NOT LOST
According to this newest survey, the economy has forced some
homeowners to make serious sacrifices or changes to their lifestyle
as they wait for conditions to improve. Just over two-thirds
(69.1%) of homeowners who have delayed selling their home reduced
their daily living expenses in order to pay their mortgage, 35.4
percent have downsized to a smaller home, and 33.5 percent have
delayed expanding their family as planned.
Approximately one-third (36%) of homeowners not in a position to
sell their home and purchase a home that better fits their needs,
report they couldn't purchase a different home in a more upscale
neighborhood as a result. This was especially true for women
(45.1%) compared to men (27.2%). In addition, 24 percent of
homeowners say they've not been able to move closer to work or a
desired school (21.9%), purchase a second vacation home or
retirement home (21.9%), or buy a rental property as an investment
(21.5%) as a result of their current situation.
REAL ESTATE REMAINS HIGH ON CONSUMER RADAR
Real estate remains top of mind with Americans as more than half
(55.1%) say they're paying more attention to home values today as
compared to a year ago. Only 10.8 percent say they're paying
less attention to home values this year. In the past year,
monthly unique visitors on the Move Network, the leader in online
real estate, have increased by 7.6% percent from 7.8 million in
February 2009(4) to 8.4 million in
February 20104. In February 2010, the
top ten most popularly searched MSAs on the Move Network in order
of popularity were Chicago,
Los Angeles-Long Beach,
Detroit, Dallas, Philadelphia, Tampa-St.
Petersburg-Clearwater, Phoenix-Mesa,
Boston, Atlanta, and Las
Vegas.
This survey, the sixth in Move's series of quarterly
Homeownership Surveys, is based on interviews conducted from
March 19 – 21, 2010. A total of
approximately 1,004 interviews were completed, with 526 female
adults and 476 male adults. The margin of error on weighted data is
+/- 3%. The survey was conducted by OmniTel, a weekly national
telephone omnibus service of GfK Custom Research North America. The
raw data are weighted by a custom designed computer program, which
automatically develops a weighting factor for each respondent. This
procedure employs five variables: age, sex, education, race and
geographic region. Each interview is assigned a single weight
derived from the relationship between the actual proportion of the
population with its specific combination of age, sex, education,
race and geographic characteristics and the proportion in our
sample that week. Tabular results show both weighted and unweighted
bases for these demographic variables.
ABOUT MOVE, INC.
Move, Inc. (Nasdaq: MOVE) is the leader in online real estate
with 8.4 million(5) monthly visitors to its online network of
websites. Move, Inc. operates: Move.com, a leading destination for
information on new homes and rental listings, moving, home and
garden and home finance; REALTOR.com®, the official Web site of the
National Association of REALTORS®; Moving.com; SeniorHousingNet;
and TOP PRODUCER Systems. Move, Inc. is based in Campbell, California. For more information:
http://www.move.com.
This press release may contain forward-looking statements,
including information about management's view of Move's future
expectations, plans and prospects, within the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995. These statements involve known and unknown risks,
uncertainties and other factors which may cause the results of
Move, its subsidiaries, divisions and concepts to be materially
different than those expressed or implied in such statements. These
risk factors and others are included from time to time in documents
Move files with the Securities and Exchange Commission, including
but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other
unknown or unpredictable factors also could have material adverse
effects on Move's future results. The forward-looking statements
included in this press release are made only as of the date hereof.
Move cannot guarantee future results, levels of activity,
performance or achievements. Accordingly, you should not place
undue reliance on these forward-looking statements. Finally, Move
expressly disclaims any intent or obligation to update any
forward-looking statements to reflect subsequent events or
circumstances.
(1) U.S. Census Bureau and the Department of Housing and Urban
Development, American Housing Study
(2) U.S..Census Bureau 2008
(3) Calculation assumes national median income per month, 20
percent down, 30-year fixed mortgage and 25 percent of gross income
allocated to mortgage.
(4) comScore Media Metrix
(5) comScore Media Metrix, March
2010
SOURCE Move, Inc.