Potential Home Buyers Growing Reluctant

Washington, DC, April 14, 2008—More potential home buyers are staying out of the market, according to a poll by the Associated Press and AOL Money and Finance.

The poll found that more than 25 percent of homeowners are concerned that their home will lose value over the next two years. Fourteen percent of mortgage holders are afraid they won't be able to make timely monthly payments over the next six months.

Sixty percent said they won't buy a home in the next two years, up from 53 percent in September 2006.

More than one in four believe home prices will fall in their area, while 40 percent believe prices will rise.

Half say homes are overpriced, particularly in the Northeast, while the number who say housing is underpriced have doubled to one in 10.