According to the California Association of Realtors on November 1st, the numbers they released confirms what I'm seeing now every day.
“Well qualified buyers are recognizing the once-in-a-generation opportunity to purchase a home in California and are jumping into the market,” said C.A.R. President LeFrancis Arnold. “However, the fierce market conditions have forced many buyers to compete with all-cash offers and investors, setting off multiple offers and bidding wars, making it even more difficult for first-time buyers to become homeowners.”
- Nearly six in 10 homes are receiving multiple offers in 2012, the highest level in the past 12 years.
- Seven of 10 REO sales/short sales received multiple offers while only half of equity sales received more than one offer.
- 41 percent of homes are selling without a markdown from the asking price, the highest level since 2005.
- In 2012, homes are selling faster with equity sales selling in 32 days compared to 67 days in 2011.
- REO's are selling in 30 days compared to 50 days in 2011.
- Short sales are taking 90 days compared to 141 days in 2011.
- 16 percent of sales are to investors, 7 percent to buyers who purchased a second or vacation home and 77 percent purchased a primary residence.
- International buyers make up 5.8 percent of sales in 2012, relatively unchanged from 2011.
- 35.8 percent are first-time buyers in 2012 compared to 34.2 percent in 2011.
- 30 percent of all home-buyers pay with all cash in 2012.
Due to the combination of limited inventory and so many buyers jumping into the market the process of buying a home is much more frustrating for all parties involved. With interest rates expected to remain low for an extended period of time we should expect these trends to continue into 2013.
Please let me know if you have any questions or feedback regarding the trends. Feel free to visit http://jeff4homes.net.