Repeat Homebuyers, Multiple Offers and
Out-of-State Buyers Key Factors Driving
California Housing Market, C.A.R. Reports
02:37 p.m Jan 12, 2000 Eastern
LOS ANGELES, Jan. 12 /PRNewswire/ -- The
proportion of repeat homebuyers in California hit its
highest mark in more than a decade, one-third of homes
on the market received multiple offers and buyers moving
to California from out of state reached the highest level in
a decade, according to the Third Quarter 1999 California
Housing Finance Survey (HFS), released today by the
California Association of REALTORS(R).
The role of the Internet in the real estate transaction
continued to increase, the survey reported, while schools'
importance in the buy-or-sell decision was measured for
the first time during the third quarter 1999.
"Since the beginning of 1999, California's housing market
has exhibited a marked shift to a repeat buyer's market,"
said C.A.R. President Richard F. Gaylord. "Both the
median home price and seller's home equity posted sharp
improvements compared to the previous five years."
The survey also reported that:
* 63.5 percent of homebuyers were repeat buyers in the
third quarter
1999, the highest proportion of repeat buyers since 1987,
when it was a
record 67.6 percent.
* Home equity (median net cash to sellers) was a solid
$73,000 in the
third quarter 1999, just slightly below the $75,000 equity
level
recorded in the first quarter 1999 and the third highest
during the
1990s.
* The median sales price was $239,700, virtually
unchanged since the
first quarter 1999 and up 6.5 percent from the second
quarter last
year. The third quarter median was the second- highest on
record.
C.A.R.'s quarterly series of Housing Finance Surveys
offers a snapshot of the financing, property characteristics
and buyer/seller demographics of California
REALTORS(R)' most recent transactions. The third
quarter results are based on a survey sent out to 5,000
California REALTORS(R), with more than 500 valid
responses for transactions that took place in July, August
and September 1999.
C.A.R.'s comprehensive Annual Housing Finance Survey,
conducted during the second quarter each year, offers a
more detailed, in-depth look at the characteristics of
residential real estate transactions in California.
"California homes sold at a robust pace throughout the
third quarter, with a large proportion of homes selling
above asking price and after receiving multiple offers,"
said Leslie Appleton-Young, C.A.R.'s vice president and
chief economist. "Nearly one-third of homes for sale --
32.7 percent -- received multiple offers."
* During the third quarter 1999, the HFS reported a
median price discount
of 1.6 percent, the same as 1998's record low. Nearly 40
percent of
home sales were at or above the asking price, and slightly
more than 13
percent of home sales were above the asking price.
* Homes were on the market for a median of four weeks
in the third
quarter 1999.
Here are additional key findings of C.A.R.'s Third Quarter
1999 California Housing Finance Survey:
Home Transactions and the Stock Market
The number of transactions where the stock market
played a role in the decision to buy or sell a home rose
from 6.6 percent in the second quarter 1999 to 10.1
percent in the third quarter 1999.
* In the San Francisco Bay Area, the stock market
played a role in 17.5
percent of the buy/sell decisions, while that proportion
was 7.0
percent in Southern California.
Migration Patterns
The proportion of sellers moving out of California has
dropped dramatically since 1996. An increasing
proportion of sellers also are remaining in the same
county. The third quarter 1999 saw the highest proportion
of out-of-state buyers on record.
* During the third quarter 1999, 44.4 percent of home
sellers stayed
within the same county, the highest on record.
* The proportion of California home sellers moving out of
California
dropped sharply from 30.9 percent in 1995 to 16.4
percent in 1999.
* The proportion of buyers coming from out of state or
out of the country
was 11.1 percent, the highest on record since 1989.
Role of Internet Continues to Increase
The incidence of buyers and sellers utilizing the Internet
rose steadily throughout the year, with buyers using the
Internet more than sellers.
Buyers:
* The proportion of buyers using the Internet to find
listings jumped
from 26.3 percent at the beginning of 1999 to 34.8
percent in the third
quarter 1999.
* Buyers accessing the Internet to find neighborhood
information rose
from 12.2 percent during the first quarter 1999 to 19.9
percent in the
third quarter 1999.
* The proportion of homebuyers looking for a mortgage
almost doubled from
6.7 percent to 12.2 percent, according to REALTORS*
participating in
the survey.
* 12.3 percent of homebuyers used the Internet to
prequalify for a
mortgage, up from 7.2 percent in the first quarter last
year.
* 24.5 percent of homebuyers used the Internet to
communicate with
REALTORS(R), up from 20.5 percent in the first quarter
last year.
Sellers:
* 24.6 percent of sellers used the Internet to communicate
with
REALTORS(R), up from 21.2 percent during the first
quarter 1999.
* 14.3 percent used the Internet to look for listings, up
from 10.0
percent earlier in 1999.
* 4.1 percent of sellers used the Internet to find a
mortgage, up from
2.9 percent at the beginning of the year.
* 3.3 percent used the Internet to prequalify for a
mortgage.
REALTORS(R)
* 27.0 percent of REALTORS* said the Internet made
the transaction
easier, compared to 23.0 percent during the first quarter
of 1999,
while 5.4 percent thought the Internet complicated the
transaction.
* 23.0 percent of REALTORS* believed the Internet
made the transaction
faster, while 1.6 percent thought it slowed down the
transaction.
Schools and Homebuying
The Third Quarter HFS also revealed that the quality of
public schools played a role in many buyers' and sellers'
transaction decisions. Additionally, a significant proportion
of buyers and sellers chose to send their children to
private school, with more seller households with
school-age children than buyer households with
school-age children opting for private schools. More
REALTORS(R)' clients sent their school-age children to
private school in Southern California than in the San
Francisco Bay Area and the Central Valley.
* The quality of the school district was a factor for 28.1
percent of
homebuyers, compared to 15.7 percent of home sellers,
during the third
quarter 1999.
* 13.1 percent of home sellers sent their school-age
children to private
school, while 8.8 percent of buyers opted for private
school.
* 19.6 percent of home sellers sent their children to
private school in
Southern California, compared to 16.0 percent in the San
Francisco Bay
Area and 2.9 percent in the Central Valley.
C.A.R.'s Annual Housing Finance Survey was first
conducted in 1981. The position of REALTORS(R) in
real estate transactions provides them with invaluable
insight into the home purchase and sale transaction.
The California Association of REALTORS(R)
(http://www.car.org) is one of the largest state trade
organizations in the United States, with more than 95,000
members dedicated to the advancement of
professionalism in real estate. C.A.R. is headquartered in
Los Angeles.
C.A.R. releases may also be retrieved by calling the PR
Newswire fax-on-demand service at: 1-800-758-5804,
ext. 131489. SOURCE California Association of
REALTORS |
