The results are in for the First Quarter 2000 California Housing Finance Survey (HFS) released today by the California Association of REALTORS, including a greater role for the Internet among buyers and sellers.

According to the first quarter 2000 results released by C.A.R., the use of the Internet among homebuyers and sellers rose to 42.9 percent in the first quarter of 2000, up from 37.4 percent for the same period a year ago.

Buyers on the Internet still outpopulate sellers, with 30.7 percent of homebuyers using the Internet compared to 18.5 percent of sellers in the first quarter of 2000.

Trending with the results of previous reports, it is not surprising that use of the Internet among homebuyers rose to 30.7 percent Q1 compared to 28.0 percent in Q1 1999.

Use of the Internet among sellers is also rising, from 14.4 percent a year ago Q1 to 18.5 percent Q1 2000.

Among other results, the survey pointed out that the homes sales accelerated, with the time on the market falling to three weeks from four weeks a year ago. The median home price rose to a record $250,000 from $240,000 in Q1, 1999. Escrow took only 35 days to close, compared to . ten years ago when the typical escrow period was between 60 and 90 days.

Buyers also had to make an extra offer to buy a home, as the median offer per home rose from two in the fourth quarter of 1999 to three in the first quarter of this year.

Rising interest rates had an impact, increasing in more than 38.2 percent of all transactions from the time an offer was made to close of escrow in Q1 2000. Realtors reported more difficulty in 16.7 percent of transactions as a result. In Q1 2000, 21.2 percent of homebuyers chose an adjustable rate mortgage as opposed to 8.2 percent of homebuyers in the second quarter of 1999.

Stock market proceeds continued to be a factor in California home sales.

Published: July 21, 2000

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