Upbeat California Sellers See Prices Rising Further, Plan to Buy Again

Perhaps atrnleast part of what may have been driving the hot California housing market isrnseller optimism.  The results of the CaliforniarnAssociation of Realtors’® (C.A.R.) 2013rnCalifornia Home Sellers Survey shows sellers as much more upbeat aboutrnrepurchasing a home than they have been in a while, thanks to the surge in homernprices, record-low interest rates, and their own improving personal financialrnsituations. </p

C.A.R.rnsaid that 69 percent of home sellers responding to its survey purchased anotherrnhome after selling, up from 47 percent in 2012 and 12 percent in 2011.  This may reflect their reasons for sellingrnwhich has shifted in only a year from the majority saying it was primarilyrnbecause of financial difficulties in 2012 to the top reason in 2013 being arndesire to trade up.  Other answers given inrnthe recent survey were a desire to take advantage of low interest rates or to cashrnout at what might be at least a temporary peak in home prices.</p

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 “Much-improved housing market conditions inrnthe last year have given sellers more confidence to own a home rather than tornrent one,” said C.A.R. President Kevin Brown.  “With sellers being morernpositive about the future of home prices, the vast majority of sellers who arerncurrently renting plan to buy again in the future.  In fact, 70 percent ofrnsellers who are currently renting said they would purchase another home, uprnfrom 22 percent in 2012.” </p

The 2013 C.A.R. Home Seller surveyrnwas conducted by telephone with 600 people statewide to measure theirrnperceptions of the home selling process.  Eligible respondents all closedrnescrow on their homes within the six months prior to August/Septemberrn2013.  </p

The survey found that nearly half orrn43 percent of respondents expect home prices to rise over the next year.  That number jumps to 58 percent when the timernperiod is extended to five years.  In thernprevious survey 9 percent expected a short term increase while 12 percent thoughtrnprices would rise over five years.  </p

Nearly all of the sellers, 98rnpercent, said they had received multiple offers on their home, up from 83rnpercent a year earlier.  The average numberrnof offers was 5.9 compared to 3.1 in 2012. rnThis competitive market also led to bidding wars and 45 percent ofrnsellers said they had received offers above their asking price and more than arnthird said they had received three or more such offers.  On average sellers received 2.2 offers aboverntheir asking price.</p

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Technology is important to sellers;rn51 percent found their agent on-line and more than two-thirds of sellers saidrnRealtor.com was the most important website in their selling process.  Seventy-four percent incorporated socialrnmedia into the selling process using Facebook, Twitter, YouTube, LinkedIn orrnYelp to learn more about their agents or to communicate with them.  One fourth of sellers used an agent with whomrnthey had previously worked while only 3 percent gave this answer in 2012.

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