Survey: Homebuyers lukewarm to government housing stimulus

EMERYVILLE
April 8, 2009 10:09am

The Obama Administration's $8,000 tax credit for first-time homebuyers is motivating them to make a purchase this year, according to recent survey results from ZipRealty.com (NASDAQ: ZIPR) of Emeryville.

The survey of active ZipRealty website users reveals that 62 percent of prospective first-time homebuyers are now more likely to buy in 2009.

But there’s just lukewarm response from other would-be buyers and sellers, says the operator of an online real estate site.

"This survey indicates that the originally proposed $15,000 tax credit may have had greater impact on the economy overall," says Leslie Tyler of ZipRealty.

"A significant number of newly registered ZipRealty.com users felt uninformed about any of the Obama Administration's housing proposals, providing a great opportunity for agents nationwide to educate new buyers about the programs and resources at their disposal,” she says. “Getting these first-time buyers into the market is crucial to economic recovery."

Highlights from the survey:

• While 62 percent of first-time buyers were motivated by the $8,000 tax credit, 10 percent of first-time buyer respondents said they didn't know enough about the program for it to influence them

• Of the first-time buyers not motivated by the $8,000 tax credit, 29 percent said they believe the credit is not enough money to make a difference; 28 percent didn't think they would qualify because of income or other restrictions; and 24 percent think home prices will decline more. The remainder cited mortgage and employment concerns.

• More than half of survey respondents (51 percent of potential buyers and 59 percent of potential sellers) indicated that the government's housing stimulus plans have no effect on their home buying or selling plans this year. Forty-one percent of buyers and 31 percent of sellers said the government's actions made them more likely to buy or sell this year.

More than half (55 percent) of buyers and 42 percent of sellers indicated their confidence in the housing market has not changed since before the election. Confidence has tipped more positive for sellers than buyers, with 28 percent of sellers now more confident about prices increasing, compared to before the election.

(Methodology

ZipRealty surveyed active ZipRealty.com users who registered on the Website in January and February 2009. The survey was conducted between March 1 and 16 and attracted 2,766 total respondents across the United States. On average, survey respondents planned to buy or sell in the next four to six months.