Southern California Real Estate Trends Continue to Show a Buyers Market
July 2, 2008 by admin
Filed under Real Estate
2007 Southern California real estate statistics show that the housing market is in the hands of the property buyers. Since then, real estate prices have fallen, and with them, interest rates. This has prompted more people to buy property in 2008 when compared to 2007. 61% of Southern California real estate buyers claimed these lowered prices encouraged them to buy, and 31% cited the low interest rates as their prime motivation.
Poor underwriting of contracts was one of the causes for the downturn in the Southern California real estate market, as it left buyers unaware and unprepared for the fluctuating interest and mortgage rates. That in tern left many victim to foreclosures and lender owned properties. The ever-increasing food and gas prices also had a devastating impact, and accelerated many on the path to foreclosure. This increase in costs of living rendered potential buyers unable to buy a home or postponed purchases in process. These trends together resulted in a large increase of available homes with people unable to purchase them.
The number of homes available for purchase gives potential buyers a wide array of choices in the Southern California real estate market. Due to this, buyers in 2008 spent more time searching for homes than in previous years. In 2007, buyers spent an average of 5 weeks looking for homes, while in 2008, they spent 8 weeks. In 2006, buyers spent only 2 and a 1/2 weeks searching for property. Those buyers who didn’t utilize virtual tours and searches visited twice as many homes before they purchased one this year.
The large variety of choices and uncertainty of the housing market’s future. Potential homeowners are taking more time to make these home purchases, and are also more cautious with the process. Internet buyers spend more time searching through homes before contacting agents in 2008, which averages to about 8 weeks, when compared to traditional buyers who searched the old fashioned way for 3 and 1/2 weeks before having a realtor step in. in 2008, 19% of Southern California real estate buyers were first time homeowners. These particular buyers spent almost 10 weeks with their realtors before buying homes, but in 2007, these buyers only spent about 6 weeks.
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