Consumers Paying More Attention to Real Estate Prices

   

Posted: Jul 21, 2009

Falling real estate prices are catching the attention of prospective home buyers, according to a recent survey.

According to the new poll from Realtor.com, 65.2 percent of respondents cite falling real estate prices as a main factor in getting them back into the housing market. About 20 percent of the respondents expressed interest in purchasing foreclosed properties in their area, while 15.5 percent said that they believe current prices are about as low as they're going to get.

"The variety and quality of homes currently within reach of the average American family is much greater than most people realize. Making credit available to responsible borrowers and building consumer confidence in the economy are now key factors in restoring vitality to the nation's housing market," said Realtor.com president Errol Samuelson.

The continuing drop in real estate prices is likely to continue to attract prospective home buyers, although the price fall may be slowing. The S&P/Case-Shiller Home Price index for April 2009 showed an 18-percent drop from April 2008 prices but just a 0.6-percent decrease from March 2009 figures.

Still, economic conditions remain tough for many would-be buyers because access to consumer credit and mortgage lending remains tight, in part because lenders have been demanding higher credit scores than ever.