About Three Out Of Four Buyers See Price Rises In The Next 10 Years; Sellers Think Prices Will Fall
In most areas of the California and the Bay Area prices continue to rise. Will the home values continue to jump? If you ask sellers or buyers you will likely get varying answers.
According to a recent CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.) “2012 California Home Sellers Survey” nearly three-fourths of home buyers think that home prices will rise in 10 years however sellers do not seem as optimistic.
Only one in five sellers believe that home prices will rise in 10 years, while 12 percent say home prices will rise in five years. Only nine percent believe prices will rise in a year. Compare those pessimistic numbers compared to 73 percent, 41 percent and 25 percent, respectively, for home buyers.
More First-Time Home Sellers in 2012
The survey also noted other interesting items:
• The year 2012 saw nearly six in 10 (57 percent) sellers as first-time sellers which marked the highest level in the survey’s history, up from 48 percent last year. 2007 signified the lowest level of first-time sellers at 15 percent.
• Consistent with recent U.S. Census data, sellers moved out of California in record numbers in 2012. Forty-four percent of sellers moved out of state, the highest in the survey’s history. Leading destination states include Florida, Texas, and North Carolina.
• In a sign of a competitive housing market environment, more than eight in 10 sellers (83 percent) received multiple offers, with homes receiving an average of 3.1 offers.
• Only 30 percent of transactions closed escrow on time, down from 40 percent in 2011 and the lowest level since 2004, with buyer financing issues as the main reasons for the delay.
• Homes fell out of escrow an average of nearly three times (2.9) before closing, with 61 percent of sellers reporting their home fell out of escrow at least three times.