Right now there seems to be many reasons why prospective home buyers are not buying. But the fact is, despite all of the excuses, people are still buying homes. According to the National Association of Realtors in their 2008 Profile of Home Buyers and Sellers, here are the reasons why buyers buy real estate.
- Desire to own a home – 34%
- Job related relocation or move – 11%
- Desire for a larger home – 10%
- Change in family situation – 9%
- Desire to be closer to family/friends/relatives – 6%
- Desire for a home in a better area – 5%
- Desire to be closer to job/school/transit – 4%
- Affordability of homes – 3%
- Desire for a smaller home – 3%
- Retirement – 3%
- Desire for a newly built or custom built home – 2%
- Establish a household – 1%
- Financial security – 1%
- Tax benefits – 1%
- Greater choice of homes on the market – 1%
- Desire for a vacation/investment home – 1%
- Purchased home for family member – 1%
- Other – 4%
I can break these down into three main categories: moves caused by change (25%), moves initiated by a desire (65%) and those who purchase because of a outside reason or as a result of logical analysis (6%).
The 25% who move beacuse of job or family changes move in any market, including now.
The 6% who see market opportunities are looking now.
The 65% of buyers who don’t ‘have’ to buy, but ‘choose’ to buy are a very sensitive group. Many of these people want to buy but are hesitant for any number of reasons. People can live with a house that is either too large or too small for quite some time before they feel compelled to act. Locally we have many people in this category. Our inventory has fallen as many people have chosen to wait until a better time. Now is a great time. Interest rates are low – Sellers are ready to sell and prices are steady to rising.