C.A.R.’s “2013 Survey of California Home Buyers” Reveal Optimism About Future Home Prices

• Buyer optimism about the future direction of home prices continued to grow, with the majority of buyers (60 percent) believing prices will go up in five years and 36 percent seeing prices rise in one year, up from 41 percent and 25 percent, respectively, last year.

• Buyers cited price decreases (38 percent), favorable prices/financing (12 percent), and the desire for a better location (10 percent) as top reasons for purchasing a home.
• Reflecting the prevalence of tight lending standards, buyers experienced extreme challenges in obtaining financing.  On a scale of one to 10, with 10 being extremely difficult, buyers rated their difficulty in obtaining financing at 8.6 on average, the highest in the survey’s history.
• Higher down payments are the market norm these days, with buyers putting an average of 25 percent down on their home purchase.  The average down payment has been greater than the traditional 20 percent since 2009.
• Ninety-one percent of buyers obtained a fixed-rate loan, up from 84 percent in 2011, reflecting low rates and the desire for certainty as the market gets back to basics.

-CAR News Release

Posted on July 31, 2013 at 2:06 pm
Nancy Low | Category: News

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