California was one of the hardest-hit states in the housing and foreclosure crisis, but an increase in seller optimism has the state’s housing market seeing better days ahead.
With rising home prices and still historically low interest rates, sellers are much more upbeat about repurchasing a home than they’ve been in a long time there, according to the newly released 2013 California Home Sellers Survey by the California Association of REALTORS®. Sixty-nine percent of sellers purchased another home after selling, up from 47 percent in 2012 and 12 percent in 2011.
Sellers are having an easier time selling their homes, too. Ninety-eight percent of the sellers surveyed said they had received multiple offers on their home, with the average number of offers being 5.9 compared to 3.1 in 2012. Forty-five percent of sellers said they received offers on their home above asking price.
“Much-improved housing market conditions in the last year have given sellers more confidence to own a home rather than to rent one,” says CAR President Kevin Brown. “With sellers being more positive about the future of home prices, the vast majority of sellers who are currently renting plan to buy again in the future. In fact, 70 percent of sellers who are currently renting said they would purchase another home, up from 22 percent in 2012.”
Source: “Upbeat California Sellers See Prices Rising Further, Plan to Buy Again,” Mortgage News Daily (Jan. 16, 2014)