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ZipRealty: Homebuyers Give Government Stimulus Plans Lukewarm Reception

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^{Published in Business and Finance on Wednesday, April 8th 2009 at 10:12 GMT, Last Modified on 2009-04-08 10:13:07 by Market Wire}  

EMERYVILLE, CA--(Marketwire - April 8, 2009) - The Obama administration's $8,000 tax credit for first-time homebuyers is motivating them to make a purchase this year, according to recent survey results from ZipRealty.com ([ www.ziprealty.com ]) (NASDAQ: [ ZIPR ]). The survey of active ZipRealty website users reveals that 62 percent of prospective first-time homebuyers are now more likely to buy in 2009. However, government plans provide little incentive for other buyers or for sellers, and confidence in the housing market overall remained largely unchanged since before the election, according to survey results.

"This survey indicates that the originally proposed $15,000 tax credit may have had greater impact on the economy overall," said ZipRealty Chief Home Hunter Leslie Tyler. "A significant number of newly registered ZipRealty.com users felt uninformed about any of the Obama administration's housing proposals, providing a great opportunity for agents nationwide to educate new buyers about the programs and resources at their disposal. Getting these first-time buyers into the market is crucial to economic recovery."

Further survey results showed:

Impact on Home Sales

 -- While 62 percent of first-time buyers were motivated by the $8,000 tax credit, 10 percent of first-time buyer respondents said they didn't know enough about the program for it to influence them. -- Of the first-time buyers not motivated by the $8,000 tax credit, 29 percent said they believe the credit is not enough money to make a difference; 28 percent didn't think they would qualify because of income or other restrictions; and 24 percent think home prices will decline more. The remainder cited mortgage and employment concerns. -- More than half of survey respondents (51 percent of potential buyers and 59 percent of potential sellers) indicated that the government's housing stimulus plans have no effect on their home buying or selling plans this year. Forty-one percent of buyers and 31 percent of sellers said the government's actions made them more likely to buy or sell this year. 

Economic Impact

 -- Twenty percent of all respondents said they did not know enough about the administration's plans to form an opinion on the overall economic impact, while another 20 percent said the plans would not have much economic impact. -- The most respondents said that they believed that struggling homeowners would benefit the most from the administration's plan at 39 percent, versus just 15 percent of respondents who said buyers would benefit the most. 

Market Confidence

 -- More than half (55 percent) of buyers and 42 percent of sellers indicated their confidence in the housing market has not changed since before the election. -- Confidence has tipped more positive for sellers than buyers, with 28 percent of sellers now more confident about prices increasing, compared to before the election. 

About the Survey

ZipRealty surveyed active ZipRealty.com users who registered on the Website in January and February, 2009. The survey was conducted between March 1 and 16, 2009, and attracted 2,766 total respondents across the United States. On average, survey respondents planned to buy or sell in the next four to six months.

About ZipRealty, Inc.

ZipRealty is a full-service residential real estate brokerage firm. The Company utilizes its user-friendly Web site and employee real estate agents to provide home buyers and sellers with high-quality service and value. ZipRealty's Web site provides users with access to comprehensive local Multiple Listing Services' home listings data, as well as other relevant market and neighborhood information. The Company's proprietary business management system and technology platform help to reduce costs, allowing the Company to pass on significant savings to consumers. Founded in 1999, the company operates in 35 major markets in 21 states and the District of Columbia. For more information on ZipRealty, visit [ www.ziprealty.com ] or call 1-800-CALL-ZIP.