Focus on Philly: Majority Say It’s a Good Time to Buy in Survey

RISMEDIA, Dec. 29, 2008-Federal bailouts. Shrinking credit markets. Dropping interest rates. These are topics that the nation’s critics talk about when describing the many aspects of the economy including real estate. However, Prudential Fox & Roach, Realtors® wanted to hear what Greater Philadelphia homebuyers and sellers thought about the current state of the local real estate market through an online survey conducted in December*.

Among the findings:

- 66 percent of respondents said that it’s a good time to buy a home in the Greater Philadelphia market.
- Fewer than two percent feel it’s a good time to sell.
- Approximately four percent believe that real estate is a bad investment right now.
- Nearly 52 percent of homebuyers and sellers believe that Greater Philadelphia is doing better than the national market, while four percent believe it is worse.

With the current state of the market perfect for first-time homebuyers, the survey found that 26 percent of first-time homebuyers in the Greater Philadelphia Market believe the government is doing enough in terms of incentive programs for first-time buyers to help the real estate market rebound.

“We’re in a holding pattern right now, waiting for next spring to gauge whether the real estate market will rebound in 2009 or take more time to heal,” said Steve Storti, senior vice president of marketing for Prudential Fox & Roach, Realtors. “Clearly, Greater Philadelphia is in much better shape than so many other markets reported in the national media. I am heartened to learn so many local homebuyers and sellers agree and haven’t been discouraged.”

Of the 25 percent of respondents actively looking to sell their current home and buy a new home, nearly 56 percent believe the value of their current home has decreased, while 19 percent believe value has risen. With the average days a home remains on market increasing, 57 percent of respondents are waiting to buy until their homes are sold.

Online tools and news sources are becoming increasingly popular with nearly 76 percent of all respondents relying on online news web sites for information about the state of the real estate market. However, 39 percent of respondents also rely on friends, family and neighbors for information about the market.

First-time Homebuyers

With current market conditions positive for buyers throughout the Greater Philadelphia region, Prudential Fox & Roach engaged first-time homebuyers. In the survey, 24 percent of all respondents categorized themselves as a “first-time homebuyer.” Nearly 53 percent of first-time homebuyers decided to purchase a home because they are tired of renting, while 44 percent cited a change in life situation such as marriage, new job, etc.

Other first-time homebuyer findings include:

- 70 percent of first-time homebuyers are under the age of 40, with 28 percent younger than 30.
- 21 percent of respondents plan to move within two months, but 52 percent are waiting more than six months.
- 66 percent of first-time homebuyers looking at new construction believe deals on new homes are more attractive now than in previous markets.
- 56 percent said the kitchen is the most important room in the house.

“New construction is attractive and now more affordable for first-time homebuyers. Builders need to sell inventory and in some cases are willing to customize homes for the right buyer. Also, markets with affordable property taxes and low traffic commutes also stand to benefit,” said Storti.

Additional findings – June 2008 vs. December 2008

The survey also indicated 25 percent of respondents are currently looking to sell a current home – down from June’s survey when 28 percent replied the same way. As for reasons for moving, nearly 44 percent of respondents have outgrown their current home and almost 35 percent have had a change in life situation. In June, 43 percent stated they have “outgrown their current home” and 30 percent stated a “change in life situation.”

In line with June’s survey numbers, 73 percent of survey respondents thought “it’s a good time to buy,” compared to 66 percent during the December survey. Confidence in the Greater Philadelphia real estate market compared to the national market has increase from the June survey at 48 percent to the December survey at 52 percent.

“More buyers are on the fence, while sellers are waiting to buy before selling their current home. However, it’s important to note that low interest rates and first-time homebuyers are looking for the ‘perfect‘ first home. So, a home in good shape, priced right and in a good location will sell,” said Storti.

*EDITOR’S NOTE: Prudential Fox & Roach invited 38,256 Home Pilot subscribers to respond to the survey. Home Pilot is the online home search tool featured on Prudential Fox & Roach’s website. Conducted online between December 10, 2008 and December 22, 2008, the survey received 1,595 completed and another 68 partially completed surveys. The complete results will be posted to the new Prudential Fox & Roach HomExpert Market Report website, www.HomExpertReport.com, and are also available upon request.

For more information, visit www.HomExpertReport.com.