In what looks like more bad news for flagging home sales, 70 percent of non-homeowners said they do not plan to purchase a home in the next 12 months, according to a survey conducted by real estate information service Trulia.
And nearly half (44 percent) of the respondents in the key first-time homebuyer age range (18-34) confirmed that high costs prohibited them from purchasing a property, despite recent home price declines.
Potential homebuyers in the 35-44 age range said concerns about obtaining home loan financing kept them on the sidelines.
And 92 percent of current homeowners who responded plan on staying put during the next year, which makes sense given the current turmoil.
In all, only 12 percent of non-homeowners said they expect to buy a home in the next year, not great new for the National Association of Realtors.
Interestingly, 77 percent of current homeowners who responded to the survey said they had not taken out home equity in the past two years.
Of course, things had already made a turn for the worse back in late 2006, so it’s not necessarily indicative of any financial responsibility on the parts of homeowners.
Many, in fact, pulled most of the equity out of their homes prior to the downturn that began around late 2006, and those looking to cash out later were met with low appraisals and more restrictive underwriting guidelines.
In spite of the ongoing crisis, 49 percent of homeowners still believe their home is a great long-term investment going forward.