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For release:
August 26, 2015

Homeowners caught in affordability squeeze, are staying put, REALTOR® survey finds

LOS ANGELES (August 26) – Even with rising home prices over the past few years, many homeowners who have considered selling are deciding not to because they are caught in an affordability squeeze that is compounded by a lack of inventory, according to findings from the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) "2015 Survey of California Homeowners."
More than one-third (35 percent) of homeowners have considered selling their home in the past year, and of that share, about two-thirds (64 percent) are reluctant to sell because they are finding they can’t afford the home they really want, the survey found.

C.A.R.’s inaugural Survey of California Homeowners also found that more than half (59 percent) of homeowners have not seriously considered selling their home in the past year, with more than half (60 percent) saying their current home will be their retirement residence. For those who have been in their home 15 years or more, that figure rises to 70 percent who indicated they have not considered selling because their current residence will be their retirement home.

But for others (44 percent), the affordability crunch, higher property taxes, and home prices are keeping them in their current home.

In first-quarter 2012, when housing in California was at its most affordable, a median income of $56,324 was needed to purchase a median-priced home. In second-quarter 2015, that figure jumped to $96,160, with 99 percent of that required income increase attributable to home price increases.

Sixty-one percent of all homeowners could be prompted to sell if they got the price they want for their home; 56 percent would sell if they had a gain in their home value; and 53 percent would sell if a better or equivalent house was available.

Fifty-six percent of homeowners who have considered selling said they desire a larger home; and 48 percent would sell because they desire a smaller home. Those who have owned their home less than 15 years were nearly twice as likely (66 percent) to consider selling due to their desire for a larger home than those who have owned their home over 15 years (34 percent).

Additional findings from C.A.R.’s "2015 Survey of California Homeowners" include:

• Forty-five percent of homeowners have considered moving out of state, with Texas (15 percent), Oregon (11 percent), New York (9 percent), and Arizona and Nevada tied (8 percent) as the top five states where homeowners have considered moving.

• Sixty percent of homeowners bought their home within the past 15 years.

• The median purchase price for all homeowners was $265,000, with the purchase price being more than twice as high for those who bought less than 15 years ago ($350,000) than those who purchased their home 15 or more years ago ($162,000).

• All homeowners surveyed have a median home equity amount of $200,000, and those who have owned their home more than 15 years have 60 percent more equity ($300,000) than those who bought within the past 15 years ($179,000).

• Twenty-four percent of homeowners don’t have a mortgage, and those who bought their home 15 or more years ago were more than twice as likely not to have a mortgage as those who bought within the past 15 years. The majority of homeowners with a mortgage (77 percent) have an interest rate below 5 percent.

• Twenty-seven percent of homeowners have tapped into their equity. Those who bought 15 or more years ago or were more likely to have tapped into their equity (32 percent) than those who bought within the past 15 years (24 percent), indicating a healthy market where homeowners are not overleveraged on their home.

• Nearly one-third of homeowners (32 percent) indicated a Craftsman-styled bungalow is their dream home, beating those preferring mansions by more than double (14 percent) and Neo-Colonial (19 percent). California is considered the center of the architectural arts and crafts movement and is home to the majority of Craftsman-styled housing.

• Nearly half of homeowners (45 percent) have children residing with them, with 83 percent of children being minors.

Survey of California Homeowner Slides (click links to open):

• Homeowners who considered selling but haven’t.
• Why homeowners aren’t selling.
• Median home equity amount.
• Top 10 states homeowners are considering.
• Homeowners who have tapped into home equity.

The 2015 Survey of California Homeowners was conducted online in May to more than 1,000 homeowners statewide to determine why homeowners are not selling. Access the full report on the survey findings here: http://ift.tt/1pXPAgv and view the webinar presentation here: http://ift.tt/1h8w53n.

Leading the way…® in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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For release:
August 24, 2015

California pending home sales climb in July to post eight straight months of annual gains

LOS ANGELES (Aug. 24) – California pending home sales soared from the previous year in July, posting the strongest year-over-year increase in more than six years, CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

In a separate report, California REALTORS® responding to C.A.R.’s July Market Pulse Survey saw a reduction in floor calls, listing appointments, and open house traffic, compared with June. The Market Pulse Survey is a monthly online survey of more than 300 California REALTORS®, which measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

Pending home sales data:

• The Pending Home Sales Index (PHSI)* climbed 17 percent on an annual basis to 122.3 in July, based on signed contracts. The July 2015 index was up from the 104.5 index recorded a year ago and marked the eighth straight month of year-to-year gains and the sixth straight month of double-digit advances.

• Statewide pending home sales in July also reversed a three-month decline, rising 1.6 percent on a month-to-month basis. The PHSI was up from the 120.4 index in June. The month-to-month increase was higher than the average June-July loss of 2 percent observed in the last seven years.

• At the regional level, pending sales rose in the San Francisco Bay Area to an index of 129.6, up 1.3 percent from June and up 9.2 percent from July 2015.

• Pending home sales in Southern California were essentially flat, dipping 0.3 percent from June to reach an index of 109.3 in July but up 16.8 percent from a year ago.

• Central Valley pending sales rose in July, increasing 3.1 percent from June to reach an index of 102.6 in July and up 20.7 percent from July 2015.

Equity and distressed housing market data:

• The share of equity sales – or non-distressed property sales – increased in July to post its highest level since late 2007. Equity sales made up 93 percent of all home sales in July, up from 92.4 percent in June and 90.2 percent in July 2014.

• Conversely, the combined share of all distressed property sales (REOs and short sales) fell in July to 7 percent of total sales, down from 7.6 percent in June and 9.8 percent a year ago.

• Twenty-two of the 43 counties that C.A.R. reports showed month-to-month decreases in their share of distressed sales, with San Francisco having the smallest share of distressed sales at 1 percent, followed by San Mateo (1.6 percent), and Alameda (2.1 percent). Solano County had the highest share of distressed sales at 24 percent, followed by Mendocino (18 percent) and Siskiyou (17 percent).

July REALTOR® Market Pulse Survey**:

• The share of sales closing below asking price was unchanged in July, remaining at 43 percent. More than a third of homes (34 percent) closed above asking price, and 24 percent closed at asking price.

• For the one in three homes that sold above asking price, the premium paid over asking price remained at an average of 11 percent, unchanged from June but up from 11 percent in July 2014.

• The 43 percent of homes that sold below asking price sold for an average of 9.6 percent below asking price in July, down from 11 percent in May.

• The share of properties receiving multiple offers rose in July to 67 percent, up from 65 percent in June and 66 percent in July 2014.

• The average number of offers per property increased slightly to 3.0 from 2.9 in June and 2.7 in July 2014.

• REALTOR® respondents reported that floor calls, listing appointments, and open house traffic all declined in July for the third straight month.

• When asked what REALTORS®’ biggest concerns are, more than one in four (26 percent) indicated the lack of inventory, 16 percent said rising interest rates, and 12 percent are concerned with home prices.

Graphics (click links to open):

• Pending home sales by region.
• Transactions closing below asking price.
• Premium paid over asking price.
• REALTORS®’ biggest concerns.

*Note: C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually becomes closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.

**C.A.R.’s Market Pulse Survey is a monthly online survey of more than 300 California REALTORS® to measure data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

Leading the way…® in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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WASHINGTON (August 27, 2015) — Pending home sales were mostly unchanged in July, but rose modestly for the sixth time in seven months, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, marginally increased 0.5 percent to 110.9 in July from an upwardly revised 110.4 in June and is now 7.4 percent above July 2014 (103.3). The index has increased year-over-year for 11 consecutive months and is the third highest… Read More

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For release:
August 26, 2015

Homeowners caught in affordability squeeze, are staying put, REALTOR® survey finds

LOS ANGELES (August 26) – Even with rising home prices over the past few years, many homeowners who have considered selling are deciding not to because they are caught in an affordability squeeze that is compounded by a lack of inventory, according to findings from the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) "2015 Survey of California Homeowners."
More than one-third (35 percent) of homeowners have considered selling their home in the past year, and of that share, about two-thirds (64 percent) are reluctant to sell because they are finding they can’t afford the home they really want, the survey found.

C.A.R.’s inaugural Survey of California Homeowners also found that more than half (59 percent) of homeowners have not seriously considered selling their home in the past year, with more than half (60 percent) saying their current home will be their retirement residence. For those who have been in their home 15 years or more, that figure rises to 70 percent who indicated they have not considered selling because their current residence will be their retirement home.

But for others (44 percent), the affordability crunch, higher property taxes, and home prices are keeping them in their current home.

In first-quarter 2012, when housing in California was at its most affordable, a median income of $56,324 was needed to purchase a median-priced home. In second-quarter 2015, that figure jumped to $96,160, with 99 percent of that required income increase attributable to home price increases.

Sixty-one percent of all homeowners could be prompted to sell if they got the price they want for their home; 56 percent would sell if they had a gain in their home value; and 53 percent would sell if a better or equivalent house was available.

Fifty-six percent of homeowners who have considered selling said they desire a larger home; and 48 percent would sell because they desire a smaller home. Those who have owned their home less than 15 years were nearly twice as likely (66 percent) to consider selling due to their desire for a larger home than those who have owned their home over 15 years (34 percent).

Additional findings from C.A.R.’s "2015 Survey of California Homeowners" include:

• Forty-five percent of homeowners have considered moving out of state, with Texas (15 percent), Oregon (11 percent), New York (9 percent), and Arizona and Nevada tied (8 percent) as the top five states where homeowners have considered moving.

• Sixty percent of homeowners bought their home within the past 15 years.

• The median purchase price for all homeowners was $265,000, with the purchase price being more than twice as high for those who bought less than 15 years ago ($350,000) than those who purchased their home 15 or more years ago ($162,000).

• All homeowners surveyed have a median home equity amount of $200,000, and those who have owned their home more than 15 years have 60 percent more equity ($300,000) than those who bought within the past 15 years ($179,000).

• Twenty-four percent of homeowners don’t have a mortgage, and those who bought their home 15 or more years ago were more than twice as likely not to have a mortgage as those who bought within the past 15 years. The majority of homeowners with a mortgage (77 percent) have an interest rate below 5 percent.

• Twenty-seven percent of homeowners have tapped into their equity. Those who bought 15 or more years ago or were more likely to have tapped into their equity (32 percent) than those who bought within the past 15 years (24 percent), indicating a healthy market where homeowners are not overleveraged on their home.

• Nearly one-third of homeowners (32 percent) indicated a Craftsman-styled bungalow is their dream home, beating those preferring mansions by more than double (14 percent) and Neo-Colonial (19 percent). California is considered the center of the architectural arts and crafts movement and is home to the majority of Craftsman-styled housing.

• Nearly half of homeowners (45 percent) have children residing with them, with 83 percent of children being minors.

Survey of California Homeowner Slides (click links to open):

• Homeowners who considered selling but haven’t.
• Why homeowners aren’t selling.
• Median home equity amount.
• Top 10 states homeowners are considering.
• Homeowners who have tapped into home equity.

The 2015 Survey of California Homeowners was conducted online in May to more than 1,000 homeowners statewide to determine why homeowners are not selling. Access the full report on the survey findings here: http://ift.tt/1pXPAgv and view the webinar presentation here: http://ift.tt/1h8w53n.

Leading the way…® in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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