Homebuyers Give Government Stimulus Plans Lukewarm Reception

RISMEDIA, April 18, 2009-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. The survey of active ZipRealty website users reveals that 62% of prospective first-time homebuyers are now more likely to buy in 2009. However, government plans provide little incentive for other buyers or for sellers, and confidence in the housing market overall remained largely unchanged since before the election, according to survey results.

“This survey indicates that the originally proposed $15,000 tax credit may have had greater impact on the economy overall,” said ZipRealty Chief Home Hunter Leslie Tyler. “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. Getting these first-time buyers into the market is crucial to economic recovery.”

Further survey results include:

-While 62% of first-time buyers were motivated by the $8,000 tax credit, 10% 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% said they believe the credit is not enough money to make a difference; 28% didn’t think they would qualify because of income or other restrictions; and 24% think home prices will decline more. The remainder cited mortgage and employment concerns.
-More than half of survey respondents (51% of potential buyers and 59% 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% of sellers said the government’s actions made them more likely to buy or sell this year.

Economic Impact-Twenty percent of all respondents said they did not know enough about the administration’s plans to form an opinion on the overall economic impact, while another 20% said the plans would not have much economic impact.
-Most respondents said they believed that struggling homeowners would benefit the most from the administration’s plan at 39%, versus just 15% of respondents who said buyers would benefit the most.

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