Making Sacrifices in a Tough Economy

More than two thirds of Americans who’ve been unable to sell their home and buy one better fitting their needs have cut back on household expenses such as food, entertainment and clothing in order to pay their mortgage.

Homeowners who have fallen on financial hard times have made other sacrifices and lifestyle changes: About a third have downsized to a smaller home or delayed expanding their family as planned.

And, a quarter of homeowners who want to sell their current home and buy another say they need to make the move in order to lower their monthly expenses due to financial problems.

In a survey, conducted for Move Inc., wide-ranging concerns about the financial condition of homeowners in a challenging economy were found, but the survey also unearthed evidence of increased demand among investors in residential real estate.

Despite economic concerns, investor interest in the housing market is growing. According to the survey, about 17 percent of potential home buyers say they plan to purchase a home in the near future as an investment. That’s three times the investor interest seen in March 2009.

Also, investor interest in purchasing a foreclosed property to fix up and resell rose from 11.3 percent in October 2009 to 16 percent in March, a 42 percent increase.

The survey showed that strong demand persists among first time homebuyers, who have until April 30th to sign a contract for a home purchase and still qualify for a tax credit of up $8,000.