Originally posted at: http://www.firstteam.com/blog/what-the-winter-buyers-report-means-for-southern-california/

Realtor.com, an online leader in real estate news and statistics has come out with the results of its Winter Home Buyer Report. They gathered data from Nov. 7-16 based on more than 1,300 homebuyers who are looking to buy during the winter months.  Fall and winter seasons are known to be slow market times in real estate, and so the results of this year’s report might surprise you.

Winter home buyer demographics:

• 28 percent said they were planning to buy because they are relocating
• 19 percent were existing homeowners downsizing to a smaller or less expensive home
• 15 percent were move-up buyers
• 19 percent said they were first-time homebuyers

If you’re thinking of buying a home soon, you might be like others who are looking forward to the advantages that winter months bring.  According to Alison Schwartz, vice president of corporate communications at realtor.com, advantages include “Motivated sellers, better prices and less competition between buyers”.

Buyers are right better prices in the Southern California market. Average listing prices from the latest Orange County October data show that listing prices have decreased 13.6% from last month and 1.2% from last year. If you’re looking for great deals this time of year, start with First Team’s Hot Buys. Our Hot Buys program identifies the best priced homes on the MLS based on price per square foot.

Here are the top reasons buyers cited for entering the market this winter:

• 26 percent said they believe that sellers are more motivated to sell and willing to negotiate.
• 24 percent indicated that they think home prices will be better.
• 24 percent revealed that they were unable to buy a house during spring or summer.
• 20 percent shared that they think there will be less competition between buyers.

Buyers also shared the biggest challenges when searching for a home during the colder months:

• 45 percent of respondents indicated there is not enough inventory within price range.
• 34 percent shared that there is not enough inventory on the market.
• 29 percent believe that winter makes house hunting unpleasant.
• 7 percent indicated that there are too many buyers

Southern California buyers of course don’t have to deal with the same unpleasantness that winter months bring when searching for homes. In fact, the holiday season is a great time to view houses in Orange County, LA and the Inland Empire because the weather is, as always, pleasant and most houses are decorated for the holidays adding a bit of cheer to your home search. Home buying during the holidays can give you ideas of your own for decorating and gives you a glimpse into which neighborhoods are the most festive.

Market data reveals that inventory is increasing in Southern California which is promising for the market. In Orange County there are currently 6,285 homes for sale, up 0.5% from last month and up 59.4% from this time last year. In Los Angeles County there are currently 12,861 homes for sale, up 0.6% from last month and up 23.7% from this time last year. For city specific inventory numbers and statistics, check out the Market Trends tool on the First Team site.

Buyers this winter are planning to put quite a bit of dough down for their new homes. Here’s the breakdown for the amount of cash winter buyer are planning to use for their down payment:

• 13 percent plan to put down 3.5 percent cash (FHA loan)
• 23 percent plan to put down 10 – 20 percent cash
• 22 percent plan to put down 21 – 99 percent cash
• 19 percent are planning to put down 100 percent cash