Realty Times March 15, 2000

Third Offer Gets A Home in California, Hints New Survey
by Realty Times Staff

In its last quarterly housing survey for 1999, the California Association of REALTORS® says that the multiple offer market was "an integral component" as buyers "competed for a dwindling supply of homes."

Said C.A.R. President Richard F. Gaylord, "During the fourth quarter about a third of all homes received more than one purchase offer."

The survey, which was sent to 5,000 Realtors with over 500 surveys returned, also reported that:

  • 22.7 percent of homebuyers submitted an offer on one other property before buying a home.

  • 20.1 percent of homebuyers submitted offers on two or more properties before buying a home.

  • 26 percent of sellers used all of their net cash proceeds from the sale of their home as a downpayment on their next home.

  • 11.5 percent of all buyers said the stock market played a role in their decision to purchase a home, compared to 10.1 percent in the third quarter, 6.6 percent in the second quarter and 10.2 percent in the first quarter of 1999.

  • REALTORS® reported that 15 percent of buyers and sellers used the Internet in the fourth quarter compared to 10 percent in the first three quarters of 1999.

  • The median sales price was $234,000, down slightly from $239,700 in the third quarter.

    "Sellers continued to enjoy solid home equity gains in the fourth quarter," said Leslie Appleton-Young, C.A.R.'s vice president and chief economist. "Median net cash to sellers was $72,500 in the fourth quarter, a slight decrease from $73,000 in the third quarter 1999."

    Additional findings from the survey:

  • During the fourth quarter 1999, the HFS reported a median price discount of 1.98 percent.

  • Nearly 34 percent of home sales were at or above the asking price, and almost 14 percent of home sales were above the asking price.

  • Homes were on the market for a median of 4 weeks in the fourth quarter 1999.

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