WASHINGTON, DC — Consumers are feeling somewhat better about conditions in the housing market, although overriding concerns linger about the state of the economy – and those concerns continue to depress home-buying activity.

That’s one of several key findings revealed in the “2009 Housing Opportunity Pulse Survey,” a major nationwide survey conducted by the National Association of Realtors among 1,250 urban and suburban adults in the nation’s top 25 metropolitan statistical areas.

The study, whose results were released last month, provides a measure of how affordable housing issues are impacting consumer purchases of existing homes, a key driver of remodeling activity in kitchens, baths and other areas of the home.

The survey found job security concerns among consumers to be the highest in seven years of sampling, according to the Washington, DC-based NAR, which reported that two-thirds of Americans think job layoffs and unemployment pose a significant problem. Eight in 10 consumers surveyed cited those issues as a barrier to homeownership, the realtors’ association said.

Among the survey’s other key findings were the following:

Despite the current challenges with the economy and housing market, 83% of Americans still believe buying a home “is a good financial decision,” the NAR reported. Three-fourths of those surveyed also believe now is a good time to buy a home, a number that has increased steadily over the past two years. One-third of renters are thinking more about buying a home than they were a year ago.

While Americans are seeing growing stability in the housing market, uncertainty persists. The number of those who feel buying and selling activity has stabilized or stayed nearly the same has grown significantly, from 18% last year to 26% this year. However the majority (58%) report that activity in their market has slowed.

Eight in 10 Americans (82%) consider having enough money for a down payment and closing costs to be the biggest obstacle to buying a home.

Regarding home sales, nearly eight in 10 surveyed consumers say it’s harder to sell a home in their area today than it was a year ago, despite the fact that nearly three-fourths of respondents say home prices are less expensive.

Large home inventories could be to blame, according to the NAR, which reports that 44% of survey respondents cite concerns about the high number of homes and condos for sale in their area.

In 2008, more than half of respondents (54%) were open to the federal government taking a more active role in overseeing mortgage and lending practices. By contrast, the number dropped this year to 47%. However, 42% of Americans believe the country is back on the right track, more than double the number last year (16%), according to the NAR.

While nearly three-fourths of Americans are concerned about the local drop in home values, respondents expect to see more stability in the near future. Nearly seven in 10 expect local home prices to remain about the same in the next three months; only 18% expect prices to further decline.

The drop in prices has improved affordability, and as a result, concerns about the lack of affordable housing are the lowest they’ve been in seven years of polling, according to the NAR. 34% of the people surveyed say affordability is one of their biggest worries, down from 41% two years ago.

Regarding financing, seven in 10 Americans cite a lack of confidence in their ability to be approved for a home loan as an obstacle to homeownership. The same number also say that banks are making it too hard to qualify for a loan (71%) and that fewer mortgage options offered by banks have made it harder for them to buy a home (71%).

Foreclosures also remain a major concern among survey respondents, the realtors’ association said.

Slightly more than half the consumers surveyed (51%) report that foreclosures are a big-to-moderate problem in their area. The rate of foreclosures is generally seen as stabilizing, however. Only 41% of those surveyed say the rate of foreclosures in their area is about the same as last year.

Ninety-two percent of respondents said neither they nor members of their immediate family have experienced a foreclosure in the past year, yet it is still a personal concern for many. One in five respondents said they are very or fairly worried that they will have difficulty making their mortgage payments over the next year.

Thirty-two percent say it’s a big or moderate worry that they, or a member of their family, may have their home repossessed or foreclosed because they are unable to pay rising monthly mortgage payments, according to the NAR.