California Association of Realtors
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LOS ANGELES — In contrast with a recent CAR survey of homebuyers that found nearly three-fourths of homebuyers think home prices will go up in 10 years, sellers are not as optimistic about future home prices, according to the California Association of Realtors’ 2012 California Home Sellers Survey.
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 9 percent believe prices will rise in a year. That compares to 73 percent, 41 percent and 25 percent, respectively, for homebuyers.
“In contrast to record high housing affordability and record low financing rates experienced by homebuyers in 2012, the real estate market looked quite different from sellers’ perspectives,” said CAR President Don Faught. “The last few years have been extremely difficult for many homeowners, which may indicate why more than twice as many sellers (74 percent) considered strategic default in 2012 than last year, reflecting homeowners’ hardships in a difficult economic environment.”
Additional findings from CAR’s California Home Sellers Survey include:
• Nearly six in 10 (57 percent) sellers were first-time sellers in 2012, the highest level in the survey’s history, up from 48 percent last year. The lowest share of first-time sellers was in 2007, when it was 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.
• An overwhelming majority (97 percent) listed their home on a multiple listing service. For the 3 percent who did not list their home, it either never went on the market or was sold privately.
• 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.
The 2012 CAR Home Seller survey was conducted by telephone to 600 people statewide to measure their perceptions of the home selling process. Eligible respondents all closed escrow on their homes within the six months prior to August/September 2012. For the full report on the survey findings, please visit the Market Data section on car.org and click on “Current Research.”