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Would-be Homebuyers Cautious As Unemployment Rises

According to a survey by Realtor.com, 53 % of those who say that they plan on buying a home in the future are not ready to take the leap right now, and most blame that on economic fears. 1/3 of potential homebuyers cited worries about job losses as the main reason, 16% worry about selling their current home, while fewer than 8 % of prospective homebuyers are sitting on the sidelines thinking prices will continue to fall. The survey also found that among those who do plan on buying soon, some believe that prices aren't going to fall further and others are looking to take advantage of government incentives. Only one in five potential buyers said they were interested in a foreclosed home, 15 % cited the $8,000 tax credit, and more than 15% said they don't expect prices will fall further. With Rhode Island Leading the nation in unemployment, these findings are not unfounded, so there is no telling how long the recovery might take. But with today's stricter underwriting policies among lenders, and a now more cautious and better informed pool of potential buyers, the end result hopefully will be fewer foreclosures down the road, which will strengthen and stabilize the housing market for years to come. This Week's Real Estate Insight: A few week's ago someone asked me who will be buying houses in the near future. Optimists, savvy investors, and solid buyers who know they are seeing the best prices coupled with historically low interest rates; these are the people who are buying these days. There is still a fear of the unknown, so the more your house is done', the more attractive it is in the market, not many people want to take on a project in this economy, but on the other hand , those who do will find many contractors are very happy to negotiate.

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