Home sellers are more positive about repurchasing a house than in the past few years, thanks to strong growth in home prices, record-low rate of interest, and better personal financial situations, based on the CALIFORNIA ASSOCIATION OF REALTORS.
Beyond two-thirds (69 percent) of home sellers are considering purchasing a home after selling their former residence, up from about half (47 percent) in 2012, and from only 12 percent in 2011.
“Much-improved housing market conditions in the last year have given sellers more confidence to own a home rather than to rent one,” said C.A.R. 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.”.
Almost half of sellers (43 percent) consider that home prices will increase in one year, compared to just 9 percent in 2012, and nearly three of five sellers (58 percent) believe home prices will increase in five years, up from 12 percent in 2012.
Additional findings from C.A.R.’s 2013 California Home Sellers Survey consist of:
The factors for selling changed significantly in just one year. In 2012, most of sellers sold primarily because of financial troubles, however as home prices climbed, a desire to trade up ended up being the top reason for selling in 2013. Others wanted to benefit from low interest rates to finance their next home, and some sellers believed the price of their home had actually peaked and desired to cash out.
Heightened market competition in the first half of 2013 led to an increase of multiple offers, almost all home sellers (98 percent) said they got multiple offers, up from 83 percent in 2012. Typically, each home sale got 5.9 offers in 2013 compared to 3.1 offers in 2012.
Intense market issues also resulted in bidding wars, with nearly half (45 percent) of all sellers obtaining offers higher than the asking price. In fact, greater than one-third (37 percent) got three or more offers above asking price. Sellers, on average, got 2.2 offers above asking price.
Website listings were an essential aspect of the selling system, with more than two-thirds of agents/sellers finding Realtor.com as the most necessary site in the selling process.
Social media is playing a larger role in the home-selling process. Almost three-fourths (74 percent) of agents/sellers integrated social media into the selling process, up from only one-fourth (24 percent) in 2010.