The California Association of Realtors hosted an industry tradeshow in San Jose earlier this month and shared some results from a recent phone survey of home Sellers in the state of California.
If you are a Seller, perhaps this will provide some comfort that you are not alone.
If you are a Buyer, this should give you a broader perspective of the market dynamics today.
Key highlights:
Primary reasons for selling - 80% have to do with money
- trouble making mortgage payments
- job loss
- mortgage payments went up
Types of mortgages held by current sellers:
- 45% are 2 year fixed, then adjustable
- 25% are 3 year fixed, then adjustable
- The 5 year fixed rate mortgages will be the next wave to reset in the coming months
45% of Sellers have owned their homes less than 2 years. The majority of the people purchased larger properties or properties in better locations. Today, their income is not keeping up with their expenses.
Seller's biggest concerns with home selling process:
- 89% say time it take to sell
- 83% say sales price of home (ie. what they will NET)
- 74% say Buyers being able to get a loan to complete the purchase
63% of Sellers have had their home fall out of escrow before it actually sold.
- 69% due to buyer not getting an acceptable mortgage
- 24% due to the lender withdrawing
A good agent with intimate local market knowledge can help Sellers price and market a property most effectively and assist in setting reasonable expectations for time on the market and the ultimate sales price.
Comments