New Poll: Buyers to Remain on the Fence

If the results of the latest Associated Press-AOL Money & Finance poll are any indication, prospective home buyers will be keeping their wallets closed and remain on the fence at least until the latest economic downturn blows over. And that could be years down the road.

A majority of those polled for the survey expressed pessimism over the nation’s housing contraction (as the Federal Reserve calls it) enough to not consider buying a home anytime soon.

Other survey results included:

• A quarter of the 769 homeowners included in the random sample of 1,002 adults surveyed nationwide were worried that their homes may continue to lose value over the next two years.
• One in seven mortgage holders were also concerned about their ability to make timely mortgage payments over the next six months.

Conducted between March 24 and April 3, 2008, by Abt SRBI Inc., the survey’s sample was selected from all states except Alaska and Hawaii. Interviews were done in both English and Spanish, with adjustments made to ensure responses accurately reflected the population’s makeup by such factors as age, race, education and region.

If the results of this latest survey are at all a true representation of current public opinion, the repercussions are obvious. For one, existing home sales — which went up in February — may be nothing more than a momentary blip on the radar screen. The idea that home prices may indeed have much further to fall before finally recovering next year or even in 2010 has people nervous and unprepared for what the future might hold.

And most importantly, the steady stream of foreclosures will continue for the foreseeable future, presenting plenty of opportunity for investors to get involved, helping to alleviate the fears of distressed homeowners facing uncertain financial consequences and almost certain foreclosure.