The California Association of Realtors recently released the “Survey of California Sellers,” a report giving statistics on the behaviors of sellers as compared to both buyers and to previous years. According to the survey, rising interest rates are prompting sellers to trade up and purchase second homes, putting pressure on the current market. Close to 75 percent of sellers are from the Boomer Generation and are expected to continue driving the market for the next several years. Two thirds of all home-buyers in 2004 have been between the ages of 35 and 54, with the majority of this group earning up to $135 annually.
Most home-sellers remained in California, with only 5 percent moving out of state. 94 percent of Southern California residents moved within the county, acknowledging that supply is not being freed up for home buyers from out of state. This also putts demand on the market.
The internet has proven to be a valuable tool for home sellers who are doing web research at quadruple the rate they were a year ago. Up from 12 percent last November, 47 percent of sellers now use the internet as a significant part of their home-selling process. But a majority of 59 percent still find their Realtor a more resourceful tool than the internet. Only seven percent of sellers found the internet to be more helpful than a live agent.
Some additional statistics found in the report include:
Twenty-nine percent of sellers were motivated to sell because of investment or tax advantages
Fifteen percent sold due to price appreciation and the ability to cash out of the market
Just over 25 percent sold in anticipation of rising interest rates, while 40 percent found interest rates to be helpful in purchasing a nicer home
The majority of those surveyed, 91 percent, reported using the internet to search comparable housing prices
