LOS ANGELES, July 6, 2015 /PRNewswire-USNewswire/ -- With an
improving economy and job market over the past year, home buyers
have started forming households again, and buyers who previously
experienced a foreclosure or short sale are back in the housing
market, according to the CALIFORNIA ASSOCIATION OF
REALTORS®' (C.A.R.) "2015 Survey of California Home
Buyers."
In 2015, more households were formed as the share of buyers who
previously lived with their parents increased to 12 percent – the
highest in the survey's history, up from 2 percent in 2014.
Additionally, the share of those who previously rented dipped from
40 percent in 2014 to 39 percent in 2015, and those who previously
owned fell from 59 percent in 2014 to 47 percent in 2015.
With distressed sales at record lows, California is returning to a more normal
housing market, with those who previously went through a
foreclosure or short sale returning to the market and purchasing
homes again. More than one in five home buyers (22 percent)
experienced a distressed sale, most of which occurred after 2007. A
further indication of this return to normalcy is reflected in the
share of buyers who were previously "underwater" on their homes,
which increased to 23 percent in 2015, up from 4 percent in
2014.
Additional findings from C.A.R.'s "2015 Survey of California
Home Buyers" include:
- In what could further exacerbate a future housing inventory
shortage, buyers in 2015 indicated they plan to keep their home
longer than ever – an average of 20 years – substantially longer
than the six years cited by home buyers in 2013.
- Buyers cited "tired of renting" (15 percent), "wanted a place
to live" (14 percent), "desired larger home" (12 percent), "changed
jobs/relocated" (11 percent), and "desired better/other location"
(8 percent) as the top reasons for purchasing a home. In looking
specifically at first-time buyers, "tired of renting" was the top
reason for purchasing a home (21 percent), followed by "wanted a
place to live" (19 percent).
- Despite the recent run up in home prices, the vast majority (85
percent) felt that their home was worth the price they paid, while
14 percent said the price was too high, and 1 percent said the
price was too low.
- While the majority of buyers (75 percent) were satisfied with
their home purchase, one-fourth made compromises, with 13 percent
saying they selected the best house given the limited supply in
their desired neighborhood, and 12 percent who said they selected
the best house in an affordable neighborhood because prices were
too high in their preferred neighborhood.
- Buyers put an average of 24 percent down on their home purchase
in 2015, down from 28 percent in 2014, and 25 percent in 2013, but
more than what has been the traditional 20 percent since 2009.
- The primary source of down payment for first-time buyers was
personal savings, cited by 49 percent of first-time buyers,
followed by "borrowed or gift," cited by 33 percent of first-time
buyers. The primary sources of down payment for repeat buyers were
personal savings (34 percent) and proceeds from sale of previous
residence (34 percent).
- Buyers spent an average of 18 weeks considering buying a home
before contacting a real estate agent in 2015, down from an average
of 19 weeks in 2014 and a high of an average of 24 weeks in 2013.
They spent an average of 14 weeks investigating homes and
neighborhoods before contacting an agent in 2015, down from an
average of 21 weeks in 2014 and a high of an average 29 weeks in
2013.
- In 2015, it took home buyers an average of 12 weeks to look for
a home, the longest since C.A.R. began the survey. It took an
average of 10 weeks in 2014 and 2013 for home buyers to find a
home. In a sign of less market competition, buyers made fewer
offers in 2015 compared to previous years – an average of 2.6
offers, down from an average of 3.6 offers in 2014, and an average
of 3 offers in 2013.
Survey of California Home Buyers Slides (click links to
open):
- More buyers previously lived with parents.
- Most buyers haven't experienced a distressed sale.
- Top reasons for buying.
- Buyers plan to keep homes longer.
- Source of down payment.
- Cash buyers still strong.
The 2015 Survey of California Home Buyers was conducted by
telephone and email to nearly 1,300 people statewide to measure
their perceptions of the home-buying process. All eligible
respondents closed escrow on their homes between February 2014 and February 2015. Access the
full report on the survey findings here:
http://www.car.org/marketdata/surveys/buyer/ and view the webinar
presentation here: http://www.car.org/marketdata/videos.
Follow us on Twitter @CAR Media and @CAREALTORS®
Like us on Facebook.
Leading the way...® in California real estate for 110 years, the
CALIFORNIA ASSOCIATION OF
REALTORS® (www.car.org) is one of the largest state
trade organizations in the United
States with 175,000 members dedicated to the advancement of
professionalism in real estate. C.A.R. is headquartered in
Los Angeles.
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SOURCE CALIFORNIA ASSOCIATION
OF REALTORS