Besides Posting a blog on why aren't people buying I also placed an article in my local paper talking about the same thing. Interestingly I received more e-mails regarding why people are not buying (first time buyers) and here are some of there reasons they gave:
1) I owe to much on student loans and I don't think I can afford to buy right now.
2) I'm living at home, waiting for the right time to buy.
3) I'm living at home and get along with my parents well, its expensive to rent and even more to buy something so I'm in no rush to purchase.
4) My credit is bad, since I have a lot of credit cards and have been a late paying on them.
5) I have no credit, live at home, have a good job but don't think I qualify for a mortgage.
My response to these 5 points (there were a few others but I felt these were the best) is as follows:
1) Depending on how much you owe on student loans and how much other debt you have, you still may qualify for a mortgage (not on a residential home but maybe a condo). Your income may be sufficient to get you a loan, but you need to find out whether you do or not, so speak to some mortgage people or go to your bank and sit down with a loan officer.
2) If you have been waiting to buy a property, let me tell you that now is the time to buy. It's been a great market for buyers for over a year. Interest rates are still low, sellers are motivated, prices are down, so if you are still sitting at home waiting you need to ask yourself why you are still not buying because it's not the market that's preventing you there is something else holding you back. The two most likely reasons are you are very very comfortable living at home or you are very anxious about moving out.
3) This reason answers itself, no motivation to move out and get into the real world. Whether you rent or buy its going to be expensive, if you purchase something you at least have an investment .
4) These people need to sit down with a qualified credit person and straighten out their debt/credit history. If you don't want to do that, then contact your creditors and work something out to pay them off, then cut your cards up (except for 1 and use that to start rebuilding your credit).
5) These people can possibly buy if there job is secure, they make good money and they have money to put down on a property. Talking to a mortgage officer will tell you whether you can purchase or not, in the meantime go out and get 1 or 2 cards (Sears store card/Best Buy store card etc..) and start builing some credit.
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