Post-recession issues still impacting real estate, according to survey

A recent study shows consumers are still hesitant to buy or sell, but are remaining optimistic about the housing market.

The biggest challenges impacting the state of the market today are still issues that emerged from the post-recession market, according to Berkshire Hathaway HomeServices’ recently released Homeowner Sentiment Survey for the second quarter of 2015.

Both current (80 percent) and prospective (82 percent) homeowners cited credit scores impacted by the recession making it difficult to get a loan as the top challenge affecting real estate. Both groups also agreed that stricter lending requirements making it more difficult to get a mortgage is impacting real estate, according to 76 percent of current homeowners, and 80 percent of prospective home buyers. The third agreed-upon issue affecting real estate is that first-time buyers can’t compete with all-cash or equity-rich buyers, according to 75 percent of current homeowners and 81 percent of prospective homeowners.

Interestingly, both groups did not consider a lower number of homes for sale as a major issue for real estate. Less than half of respondents found inventory to be impacting real estate today. However, 75 percent of both homeowners and prospective homeowners believe the current market is competitive, which is driving up prices of homes.

In fact, only 6 percent of current homeowners and 1 percent of prospective homeowners consider the number of homes on the market as decreasing, according to the survey.

Berkshire Hathaway HomeServices also interviewed all the current homeowners to see what is stopping homeowners from putting their homes on the market. Of current homeowner respondents, 23 percent have considered selling their home, but haven’t pulled the trigger yet.

The top reason these consumers have not put their homes on the market is because they are concerned about setting the correct listing price for their home. Other top reasons included deciding what needs to be renovated and updated before putting their home on the market, preparing/cleaning their home for the sale, interviewing and finding the right agent to help sell the home and paying off their current mortgage.

Of those contemplating moving, 39 percent are looking to move into a bigger home, 33 percent are looking to move to a smaller home, and 28 percent are looking to stay the same.

More than half, 55 percent, of those contemplating selling their home would be more likely to put their homes on the market if given more information about the process.

Overall, 71 percent of both current and prospective home buyers believe the market is moving in the right direction.

The survey interviewed 2,557 residents of the U.S., with 2,058 current homeowners and 499 prospective homeowners replying.