STUART, Fla.–(Business Wire)–While recent real estate market analysis tends to assess past or current market conditions, The Cotton Report’s latest survey focused on measuring buyer confidence among those actively pursuing real estate investments – revealing attitudes and beliefs that may affect market recovery.
According to Stephann Cotton, CEO of Cotton & Company, “Most of our clients are re-evaluating every aspect of the sale. They`re re-pricing inventory and preparing for the pent-up demand that will be released as we emerge from the down cycle.”
Survey results:
On the current real estate market:
* 12% believes it has already reached the bottom
* 34% believes it will reach the bottom within 6 months
* 65% believes it will reach the bottom within 12 months
* 39% believe reduction in inventory levels signals market turnaround
Of those actively purchasing real estate:
* 30% anticipates purchasing within 6 months
* 34% are purchasing due to geographic relocation
* 23% are purchasing for investment/rental income
* 65% express interest in purchasing single-family homes
* 65% own 1 home, 35% own 2 or more
* 71% considering purchase do not need to sell their existing home to complete the transaction
Purchase incentives:
* 59% indicate a price reduction of 20-40% would motivate purchase
* 55% indicate a 4% of lower 30-year mortgage would motivate purchase
* 49% indicate a capital gains tax waiver against future income would motivate purchase
Laurie Andrews, COO of Cotton & Company, explains, “We`ve never been throughthis type of environment before, and there`s no road map for what to expect from the recovery.” Andrews continues, “We do know that the timing is right for thosein a position to take advantage of opportunities in this buyer`s market. Many new home communities are offering their current inventory below the price to build with today`s construction costs.”
About Cotton & Company
Cotton & Company is an award-winning real estate marketing firm that has represented more than 1,500 communities including: custom estate, master planned, multi-family, resort and spa destinations. Cotton & Company also manages marketing programs for destination clubs, the marina industry, tourism and corporate portfolios.
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