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Survey Lists Current Home Buyer Fears, Barriers to Ownership
According to a survey completed by the National Association of Realtors, high monthly payments are the greatest obstacle to purchasing a home. One out of three Americans worries about their monthly mortgage payments. The survey also lists the leading concerns associated with owning a home. Rising property taxes tops the list at 34% followed closely by increasing electrical, fuel and other energy costs at 28%, while 14% worry about rising interest rates.
The statistics corroborate homebuyer’s fears. The average monthly mortgage payment in 2003 was $840. In 2005, that number jumped by 23.8% to $1,040. From April 2005, to April 2006, payments increased even further by 11.5 percent to $1,132.
In February 2006, the price of electricity was up 12% from the previous year. During the same period, gas increased by 28% and home heating oil jumped by 25%.
In 2002, property taxes averaged $969. They rose to $985 in 2003 and climbed by 15.7% in 2004 to $1,121.
These are statistics could be keep renters from entering the home-buying arena. Nearly a third of those surveyed in the National Housing Opportunity Pulse say they worry housing costs are so unaffordable that they will never be able to buy a home.
Another survey by Wells Fargo Home Mortgage lists some additional barriers for renters:
- 78% of renters believe that it is generally true that people cannot obtain mortgages without perfect credit.
- 52% of renters believe that they personally can't get a mortgage because of credit issues, even though 46% of the first-time homebuyers surveyed didn't believe their credit was "excellent" or even "very good".
- 56% of renters believe that a down payment of 15% or more is required when buying a home.
55% believe that size of a down payment is a personal barrier for them, even though 74% of first-time homebuyers reported they put less than 15% down.
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