As REALTORS®, you work with home buyers every day – and you know each one is different. However, sometimes it’s nice to know overall trends of what buyers are thinking … and that’s where the California Association of Realtors (C.A.R.) Buyers Survey comes in. C.A.R. just released their “2012 Survey of California Home Buyers,” which found increased confidence and optimism in buyers. Check out some other notes below:
- Buyers expect prices to rise. 25% expect home prices to rise in one year, 41% in the next 5 years, and 73% expect them to rise in the next 10 years (compared to 8%, 25% and 60%, respectively, in 2009.
- Deductions are extremely important. Across all age groups (Gen Y, Gen X, and Baby-Boomers) and income levels (under 100k, 100-200k, and 200k+) no less than 76% said deductions were extremely important in their buying decisions (most were over 80%).
- Among other reasons cited for purchase a home: decreased prices (85%), better location (12%), and favorable prices/financing (11%)
- Financing is a huge difficulty and concern. On a scale of one to 10, with 10 being extremely difficult, buyers rated their difficulty with obtaining financing an 8.5. That is up from 8.0 just a year ago.
- High down payments are standard in this market. Buyers on average put 25% down on their home purchase. The down payment average has been above the old “norm” of 20% since 2009.
- Buyers want certainty. 93% of buyers obtained a fixed-rate loan (up from 84% in 2011).
It’s important to know this survey is California-wide. Each market place is different, but this provides a nice overview of buyer feelings in the state (and many of these trends are echoed in the Bay Area). For more information visit the C.A.R. website.