2014 Annual Housing Market Survey

2014 ANNUAL HOUSING
MARKET SURVEY
December 4, 2014
Oscar Wei, Senior Research Analyst
METHODOLOGY
C.A.R. has conducted the Annual Housing Market Survey since 1981. The
questions and methodology have stayed essentially the same throughout
that time.
The survey was sent via email to a random sample of 26,674 REALTORS
throughout California. The sample represented the geographical
distribution of C.A.R. membership across the state. The survey asked
REALTORS to provide information from their most recent sales
transaction that closed escrow in the second quarter of 2014.
The survey instrument was a questionnaire with both multiple choice and
open-ended questions. There were 1,458 valid survey responses,
equivalent to a response rate of 5.5 percent. The margin of error for this
survey was +/- 2.6 percent at a 95 percent confidence level.
TODAYS MARKET
Clearly well on the road to recovering
Volume A bit down, still reliant on investment sales
Prices up sharply, but increases slowing in most markets
Inventory remains tight
Pent-up/unrealized demand not yet translating into sales
Affordability challenges emerging once again
SALES OF EXISTING DETACHED HOMES

California, Oct. 2014 Sales: 396,220 Units, -8.8% YTD, -1.9%YTY
700,000
600,000
500,000
Oct-13:
404,000
Oct-14:
396,220
400,000
300,000
200,000
100,000
-
SERIES: Sales of Existing Single Family Homes

SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
*Sales are seasonally adjusted and annualized
DEMAND FOR INVESTMENT & SECOND/ VACATION

HOMES DROPS TO THE LOWEST SINCE 2010
Vacation/Second Home
30%
Investment/Rental Property
25%
5%
20%
15%
Long Run Average: 12 %
10%
5%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0%
15%
SERIES: 2014 Housing Market Survey
MORE DISTRESSED SALES ARE BEING ABSORBED BY

INVESTORS OVERTIME
60%
Share of Distressed Sales Bought by First-Time Buyers

Share of Distressed Sales Bought by Investment Buyers
50%
40%
30%
20%
10%
0%
2008
2009
2010

2011
2012
2013
2014
EQUITY SALES VS. REO VS. SHORT SALES (2014)

Equity Sales
REO Sales
Short Sales
Share of Total Sales
93.5%
2.5%
3.6%
Median Home Price
$479,000
$280,000
$277,500
Square Footage
1,700
1,500
1,400
Price / SF
$294
$143
$183
Sales-to-List Price Ratio
100.0%
99.1%
100.0%
% of Sales With Multiple Offers
51.4%
82.6%
65.0%
Avg. Number of Offers
4.2
6.5
4.6
% of All Cash Sales
21.7%
21.7%
30.8%
Days on MLS
15
20
30
Days in Escrow
30
32
52

EQUITY SALES (2011 - 2014)

2011
2012
2013
2014
58.7%
64.7%
80.8%
93.5%
Median Home Price
$431,000
$448,000
$456,635
$479,000
Square Footage
1,783
1,750
1,678
1,700
Price / SF
$250
$243
$270
$294

% of Sales With Multiple
Offers
95.9%
97.3%
100.0%
100.0%
35.2%
50.9%
69.0%
51.4%
3.0
4.0
5.2
4.2
% of All Cash Sales
25.5%
27.3%
25.2
21.7%
Days on MLS
67
32
10
15
Days in Escrow
35
35
30
30

REO SALES (2011 - 2014)

2011
2012
2013
2014
19.7%
12.3%
4.9%
2.5%
Median Home Price
$189,500
$185,000
$175,500
$280,000
Square Footage
1,500
1,500
1,400
1,500
Price / SF
$112
$116
$101
$143
98.0%
100.0%
100.0%
99.1%

Offers
58.3%
70.8%
91.2%
82.6%
4.3
4.2
7.4
6.5
% of All Cash Sales
34.0%
43.1%
50.0%
21.7%
Days on MLS
50
30
15
20
Days in Escrow
35
45
35
32

SHORT SALES (2011 - 2014)

2011
2012
2013
2014
20.2%
21.7%
14.0%
3.6%
Median Home Price
$287,000
$235,000
$276,500
$277,500
Square Footage
1,600
1,600
1,650
1,400
Price / SF
$175
$154
$146
$183
95.9%
99.9%
103.0%
100.0%

Offers
57.5%
66.1%
75.7%
65.0%
3.6
4.3
7.1
4.6
% of All Cash Sales
23.3%
26.7%
35.7%
30.8%
Days on MLS
141
90
14
30
Days in Escrow
45
50
60
52

MARKET COMPETITION COOLS DOWN

AFTER PEAKING IN 2013
% with Multiple Offers
# of Multiple offers (Average)
80%
70%
60%
50%
40%
30%
20%

72%
6
5.7
53% 5
4.3
4
3
2
10%
0%
FEWER HOMES SOLD ABOVE THE ASKING PRICE AS

MARKET COMPETITION COOLED IN 2014
Sale Price to Asking Price
Amt. of Price Reduction

Median Reduction = 4.5% of List Price
Below Asking Price
At Asking Price
Above Asking Price
Less than 5%
33%
54%
5% to 9.99%
28%
49%
10% to 19.99%
18%
11%
20% or more
7%
0%

20%
40%
60%
FEWER HOMES SOLD ABOVE THE ASKING PRICE

AS MARKET COMPETITION COOLED IN 2014
60%
10%
% of Sales above Asking Price
9%
50%
50%
8%
14
Med. Price Discount

Med. Weeks on MLS
12
7%
40%
33%
30%
16
Median Price Discount & Weeks on Market
Long Run Average = 19%
10
6%
5%
4%
20%
3%
2%
10%
4
0%, 2.1
weeks
1%
0%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
2
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
PRICE REDUCTION PRIOR TO AN OFFER BEING MADE

Price Reduction
Yes
No
Amt. of Price Reduction

Avg. Reduction $ = $10,000
More than $50,000
29%
19%
$20,001 - $50,000
13%
$10,001 - $20,000
13%
$5,001 - $10,000
71%
11%
$1001 - $,5000
7%
$1,000 or less
37%
0%
20%
Q. Was there any price reduction made to the list price prior to an offer being made to the property?
Q. How much was the price reduction?
40%
SHARE OF CASH BUYERS IS THE LOWEST SINCE 2009

35%
% of All Cash Sales
30%
25%
20%
15%
10%
Almost one-fourth of buyers paid

with all cash
The share of all cash buyers is the
lowest in the last 5 years
5%
0%
22%
THE SHARE OF INTERNATIONAL BUYERS DECLINES

FROM 2013, BUT STILL THE 2ND HIGHEST IN THE LAST 6
YEARS
9%
8%
7%
6%
6%
5%
4%
3%
2%
1%
0%
2008 2009 2010 2011 2012 2013 2014
Q. Was the buyer an international buyer a person who was a citizen of another country who wished to
purchase residential real estate in the U.S.?
REALTORS WORKED WITH INTERNATIONAL BUYERS

IN THE PAST 12 MONTHS
# of Properties Sold to International Buyers in the Last 12 Months
% Who Sold to International Buyers
90%
80%
70%
79%
71% 72%
2012
2013
60%
2014
50%
40%
30%
20%
10%
9%
14%
12%
5% 6% 6%
0%
3% 4% 3%
1% 2% 2%
0
1
2
3
4
Q. How many properties have you sold to an international buyer in the last 12 months?
3% 4% 5%
5 or more
REASONS TO BUY IN CALIFORNIA

Mild year-around weather
Advanced Educational Opportunities

System
# of
Campuses
Examples
University of California
10
Amazing outdoor environment
California State
University
23
University of California,
Berkeley
University of California, Los
Angeles
University of California,
Riverside
University of California, San
Diego
Cal State University,
Fullerton
Cal State University,
Northridge
Cal State Polytechnic
University, Pomona
California Community
College
109+
Santa Monica College

Pasadena City College
Private University
Hundreds
California Institute of
Technology
Pepperdine University
Stanford University
University of Southern
California
COUNTRY OF INTERNATIONAL BUYER
China (36%)
Canada (10%)
India (12%)

PRICE PLATEAU AHEAD; ANNUAL GAINS

SLOWING
California, Oct. 2014: $450,620, Up 5.4%YTY
$700,000
P: May-07
$594,530
Oct-14:
Oct-13:
$450,620
$427,540
$600,000
$500,000
T: Feb-09
$245,230
-59% from
peak
$400,000
$300,000
$200,000
$100,000
SERIES: Median Price of Existing Single Family Homes

Jul-14
Jan-14
Jul-13
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-09
Jul-08
Jan-08
Jul-07
Jan-07
Jul-06
Jan-06
Jul-05
Jan-05
$-
INCOME REQUIRED TO BUY A MEDIANPRICED HOME IN CA: (PEAK VS. CURRENT)

$100,000
$94,965
$80,000
$60,000
Change in minimum required income:

$38,641
Increase in income attributed to
interest rate increase:
$365 (0.9% of total change)
$56,324
$40,000
Increase in income attributed to price

increase :
$38,276 (99.1% of total change)
$20,000
$0
2012 Q1
2014 Q3
SERIES: Housing Affordability Index

HOUSING AFFORDABILITY DOWN

SHARPLY SINCE Q1 2012
California vs. U.S. 1984-2014
% OF HOUSEHOLDS THAT CAN
BUY A MEDIAN-PRICED HOME
80%
CA
70%
60%
50%
40%
30%
20%
10%
0%
SERIES: Housing Affordability Index of Traditional Buyers

US
Annual
Quarterly
SHARE OF FIRST-TIME BUYERS UP

BUT STILL BELOW LONG-RUN AVERAGE
% First-Time Home Buyers
Long Run Average
50%
Long Run Average = 38%

40%
30.5%
30%
20%
10%
0%
2005
2006
2007
Q. Was the buyer a first-time buyer?
2008

2009
2010
2011
2012
2013
2014
FINANCIAL CHARACTERISTICS:
FIRST-TIME VS. REPEAT
First-time Buyers Repeat Buyers
All Buyers
Median Household Income
$80,000
$120,000
$100,000
Median Monthly Mortgage Payment
$1,477
$1,868
$1,800
Median Downpayment (in $$)
$32,500
$100,000
$70,000
Median Downpayment (in % to Price)
10%
20%
19.7%

THE MEDIAN DOWN PAYMENT REMAINED THE SAME

AS IN 2013
Median Down Payment
% of Down Payment to Price
$90,000
25%
$80,000
20%
$70,000
20%
$70,000
$60,000
15%
$50,000
$40,000
10%
$30,000
$20,000
5%
$10,000
$0
2005
2006
2007
2008
Q. What was the amount of downpayment?
0%
2009
2010
2011
2012
2013
2014
MEDIAN DOWN PAYMENT

FIRST-TIME HOMEBUYERS VS. REPEAT HOMEBUYERS
$140,000
First-Time Buyers
Repeat Buyers
$120,000
$100,000
$100,000
$80,000
$60,000
$32,500
$40,000
$20,000
$0
2005
2006
2007
2008
Q. What was the amount of downpayment?
2009
2010
2011
2012
2013
2014
CASH SOURCE FOR DOWN PAYMENT

FIRST-TIME BUYER VS. REPEAT BUYER
All Buyers
Personal saving
63.3%
50.8%
54.8%
Proceeds from sale of previous

residence
0.0%
22.7%
15.6%
Borrowed or gift from relatives
15.5%
4.5%
8.1%
Sale of personal assets other than real

property
1.7%
3.5%
2.9%
Inheritance
4.0%
2.9%
3.2%
Proceeds from sale or refi of another

property
0.0%
4.6%
3.2%
Other
13.5%
11.0%
12.2%
Q. What was the source of the cash the buyer used for a downpayment or to purchase the residence?
STUDENT LOAN DEBT AN ISSUE FOR 25% OF

RENTERS
Student Loan Debt
Amount of Debt
<$10,000
Refused,
2%
$10-$20K
8%
$20-$50K
6%
No, 75%
Yes, 23%
SERIES: 2013 Renter Survey

78%
$50-$100K
3%
> $100K
2%
Refused
2%
STUDENT DEBT: DRAGS ON HOME SALES
RISING SHARE OF NEVER-MARRIED ADULTS

% of men and women ages 25 and older who have never been married
SOURCE: Pew Research Center analysis of the 1960-2000 decennial census and 2010-2012 American Community Survey
BUYER HOUSEHOLD FORMATION

(OVER THEYEARS)
2000
2005
2010
2011
2012
2013
2014
30.8%
29.7%
32.4%
28.6%
28.9%
22.4%
21.7%
33.8%
36.9%
30.8%
34.8%
33.6%
39.4%
42.6%
27.1%
19.2%
23.8%
24.2%
24.0%
25.1%
23.5%
7.2%
13.8%
11.2%
10.7%
11.5%
9.6%
9.1%
Other
1.4%
0.5%
1.8%
1.7%
2.0%
3.5%
3.1%
Total
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Single
Married Couple with
Dependents
Married Couple without
Dependents
2 or More Individuals
(Related or Unrelated)

LOCATION OF BUYERS PREVIOUS RESIDENCE

All Buyers
Within the same county
63.9%
56.2%
58.2%
In another county in California
18.1%
21.6%
20.0%
In another state
1.4%
11.0%
7.9%
Out of US
3.6%
2.1%
2.5%
Don't Know/Not sure
13.1%
9.1%
11.4%
Total
100.0%
100.0%
100.0%

LOCATION OF BUYERS PREVIOUS RESIDENCE
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
62% 57% 58%
63%
61% 61% 65%
64%
62%
57%
In another county in California 21%
23% 22% 17%
18%
18%
24% 19% 22% 20%
In another state
6%
6%
6%
8%
6%
7%
7%
8%
7%
8%
Out of US
1%
2%
1%
3%
2%
2%
3%
2%
2%
2%
Don't Know/Not sure
9%
8%
10%
7%
10%
11%
10%
8%
12% 11%
Total
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

REASONS FOR CHANGING COUNTY

First-Time Buyers
0%
5%
Repeat Buyers
10%
Housing affordability
20%
16%
7%
12%
14%
12%
Closer to family/relative
Quality of life
18%
8%
9%
Quality of school
7%
Job change
3%
3%
1%
Quality of community services

Second home
0%
Other
25%
30%
26%
10%
Shorter commute to work/school
Retired
15%
10%
7%
4%
14%
19%
PERCENT OF BUYERS WITH ZERO DOWN PAYMENT

50%
All Hombuyers
First-Time Buyers
Repeat Buyers
40%
30%
Down Payment
20%
11.3%
7.9%
10%
6.9%
5.1%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
PROPORTION OF TRANSACTIONS WITH SECOND

MORTGAGES
Percent of Home Sales with Second Mortgage
50%
40%
30%
20%
10%
4%
0%
2005
2006
2007
2008
2009
2010
2011
2012
Q. In addition to the first mortgage or assumption, was there a second mortgage?
2013
2014
PERCENT OF BUYERS WITH SECOND MORTGAGE

70%
First-Time Buyers
Repeat Buyers
60%
50%
40%
30%
20%
10%
0%
2005
2006
2007
2008

2009
2010
2011
2012
2013
2014
SHARE OF FHA STILL SIGNIFICANTLY HIGHER THAN 2007,

BUT WAS THE LOWEST IN 7YEARS (FIRST MORTGAGE)
40%
FHA
VA
30%
20%
7%
10%
16%
0%
2005
2006
2007
2008
Q. Please indicate the type of mortgage.
2009
2010
2011
2012
2013
2014
WHY DO WE CARE ABOUT LOW LEVEL OF

FIRST-TIME BUYER?
It signals a constrained flow of new households
in the housing market
Trade-up market cannot be replenished in the
long run
First-time buyers represent the main impulse
that drives the states homeownership rate
HOMEOWNERSHIP RATES
California Vs. U.S.
75%
70%
65%
60%
55%
50%
45%
40%
SERIES: Homeownership Rates

SOURCE: U.S. Census Bureau
CA
US
BUYERS FINANCIAL PROFILE (BY AGE RANGE)

Age 30 and
under
Age 30-44
Age 45-64
Age 65 and up
Median Income
$65,000
$100,000
$120,000
$100,000
Median Price
$284,000
$508,500
$495,000
$400,000
Downpayment ($)
$20,000
$62,000
$109,000
$100,000
Downpayment (% to Sale Price)
5.0%
13.7%
20.0%
22.0%
% of First-Time Buyers
85.4%
45.6%
13.3%
4.5%
-$26,508
$8,492
$28,492
$8,492
28.6%
64.8%
66.4%
59.1%
Diff. Between Median Income and

Mini. Req. Income
% Can Afford to Buy a Median-Priced
Home
HOMEOWNERSHIP RATE BY AGE OF

HOUSEHOLDER
SOURCE: Census Bureau
MILLENNIAL HOMEOWNERSHIP FALLING
SOURCE: Census Bureau
REASONS FOR BUYING
Desired Smaller Home,

3.5%
Retirement/Move
to Retirement
Community, 2.8%
Other, 8.8%
Tired of Renting, 24.7%
Foreclosure/Short
Sale/Default, 0.5%
Changed Jobs, 4.0%
Change in Family
Status, 5.0%
Desired Larger Home,

18.3%
Desired Better
Location, 16.5%
Investment/ Tax
Considerations, 15.8%
Q. What was the single most important reason for buying the property?
REASONS FOR BUYING

FIRST TIME HOMEBUYERS VS. REPEAT HOMEBUYERS
First-Time Buyers
0%
10%
Repeat Buyers
20%
Tired of Renting
Desired Larger Home
Desired Better Location
Change in Family Status
Investment/ Tax Considerations
Other
Changed Jobs
Retirement/Move to Retirement Community
Foreclosure/Short Sale/Default
Desired Smaller Home
Q. What was the single most important reason for selling/buying the property?
30%
40%
50%
60%
FIRST-TIME BUYERS BOUGHT BECAUSE THEY WERE

TIRED OF RENTING
% Bought Because of Tired of Renting
70%
60%
54%
50%
40%
2007
2008
Q. Was the buyer a first-time buyer?
2009

2010
2011
2012
2013
2014
FIRST-TIME BUYERS NEEDYOUR HELP

CONNECT EARLY AND OFTEN
Financial Literacy: How to manage their finances
What about student-loan debt?
Can my parents help me out?
How do I increase my credit score?
How to save for a down payment and how much?
What programs are available? Tools to find out
Downpayment Resource on car.org
DOWNPAYMENT.CAR.ORG
INVENTORY IMPROVING FROM LASTYEAR

Oct 2013: 3.3 Months; Oct 2014: 3.8 Months
18
16
14
12
10
8
6
4
2
0
Note: Unsold Inventory Index represents the number of months it would take to sell the remaining inventory for the month in question. The
remaining inventory for the month is defined as the number of properties that were Active, Pending, and Contingent (when available) and divide
the sum by the number of Sold properties for the month in question.
SERIES: Unsold Inventory Index of Existing Single Family Homes

WHY WAS/IS INVENTORY SO LOW?

Demand Side
Housing affordability was at historic highs
Low rates hurt investment alternatives
International buyers
Supply Side
Little new construction for last 5 years
Underwater homeowners are stuck
Mortgage Lock-In Effect
No inventory to move up
Foreclosure pipeline drying up
Investors are renting instead of flipping
Off-market (aka pocket) listings
BUYING TO RENT: WINNING INVESTMENT

STRATEGY
Investment to Flip
Rental Property
FOR THOSE WHO PURCHASED AN INVESTMENT

PROPERTY:
Equity Sales
Distressed Sales
2011
2012
2013
2014
Flip 15%
Flip 20%
Flip 12%
Flip 23%
Rent 85%
Rent 80%
Rent 88%
Rent 77%
Flip 14%
Flip 9%
Flip 26%
Flip 62%
Rent 86%
Rent 91%
Rent 74%
Rent 38%
Investment
Investment
CA PERMITS UP BUT MORE UNITS NEEDED

2013: 80,318 Units, Up 37.2% from 2012
350000
Single Family
Multi-Family
300000
250000
200000
150000
100000
50000
0
SERIES: New Housing Permits

SOURCE: Construction Industry Research Board
Household Growth: 220,000-250,000/yr
POCKET LISTINGS
0%
20%
Property listed on an MLS
Transaction happened on auction.com

60%
80%
100%
96%
Property marketed before it was being listed

on the MLS
Property received an accepted offer prior to
it being listed on the MLS
40%
16%
4%
1%
YEARS OWNED HOME BEFORE SELLING

10
9
8
7
6
5
4
3
2
1
0

All Sellers
REASONS FOR SELLING

Foreclosure/Short
Sale/Default, 6.2%
Other, 21.3%
Change in Family
Status, 13.3%
Retirement/Move to
Retirement
Community, 11.6%
Desired Larger Home,

8.4%
Changed Jobs, 7.0%

Investment/ Tax
Considerations, 10.9%
Desired Smaller Home,
8.5%
Desired Better
Location, 12.8%
Q. What was the single most important reason for selling the property?
SELLERS WHO SOLD BECAUSE THEIR PROPERTIES WERE

IN DISTRESSED STATUS WERE BACK TO 2007 LEVEL
35%
% of Homes Sold Due to Foreclosure/Short Sale/Default
30%
25%
20%
15%
10%
5%
6%
0%
2005
2006
2007
2008
2009
2010
2011
Q. What was the single most important reason for selling/buying the property?
2012
2013
2014
SELLERS WITH NET CASH LOSS DROPPED TO THE

LOWEST LEVEL SINCE 2006
35%
Long Run Average = 12.2%
30%
25%
20%
15%
10%
8.2%
5%
0%
2005
2006
2007
2008
2009
2010
2011
Q. What was the net cash gain or net loss to the seller as a result of this sale?
2012
2013
2014
NET CASH GAIN TO SELLERS ROSE AGAIN FOR THE

SECONDYEAR
$250,000
$200,000
$150,000
$100,000
$100,000
$50,000
$0
2005
2006
2007
2008
2009
2010
2011
Q. What was the net cash gain or net loss to the seller as a result of this sale?
2012
2013
2014
NEARLY HALF OF ALL SELLERS ARE PLANNING TO BUY

ANOTHER HOME AS THE MARKET RECOVERS
80%
70%
60%
50%
48%
40%
30%
20%
10%
0%
2005
2006
2007
2008
2009
Q. Is the seller planning on purchasing another home?
2010
2011
2012
2013
2014
LOCATION OF SELLERS NEW HOME
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
38%
41% 37% 45%
47%
42%
49% 49% 46% 44%
In another county in California 23%
18% 24% 17%
21%
21%
19%
18% 20% 21%
In another state
31%
28% 29% 27%
19%
20%
20% 22% 19% 22%
Out of US
1%
2%
1%
1%
2%
1%
1%
1%
Don't Know/Not sure
7%
11%
9%
10%
12%
16%
10%
10% 15% 13%
Total
0%
1%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

FOR THOSE WHO DO NOT PLAN TO REPURCHASE,

HERE ARE THEIR TOP REASONS:
2012
2013
0%
2014
5%
10%
15%
14%
Seller prefers to have less financial obligation

10%
Seller owns another home
8%
7%
9%
7%
4%
6%
7%
6%
6%
5%
5%
5%
Decide to live with family/friends

Deceased
Retirement/Moved to Retirement Facility
Out of work/underemployment
Seller is a lender/bank
Lack of cash for down payment
Poor credit background
20%
7%
4%
6%
2%
3%
5%
9%
9%
12%
25%
22%
21%
16%
15%
KEY TAKEAWAYS
Sales down from 2013, but improving in recent months;
investment sales still play a role
International buyers continue to show interest in buying in CA
Prices up sharply, but increases slowing in most markets
Housing affordability remains a challenge, especially to firsttime buyers
Sellers are optimistic about the housing market
CALIFORNIA HOUSING MARKET FORECAST

2011
2012
2013
2014 P
2015 F
SFH Resales (000s)
422.6
439.8
413.3
380.5
402.5
% Change
1.4%
4.1%
-5.8%
-8.2%
5.8%
Median Price ($000s)
$286.0
$319.3
$407.2
$455.0
$478.7
% Change
-6.2%
11.6%
27.5%
11.8%
5.2%
Housing Affordability Index
53%
51%
36%
30%
27%
30-Yr FRM
4.5%
3.7%
4.0%
4.3%
4.5%
SERIES: CA Housing Market Outlook

JOIN US FOR OUR NEXT WEBINAR
Working with International Home

Buyers in California
Thursday, January 29, 2014
2:00 PM - 3:00 PM
To register:
WWW.CAR.ORG/MARKETDATA/VIDEOS
http://www.car.org/marketdata/map
For more information:

http://www.facebook.com/CARResearchgroup
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Sharing the most up-to-date information
about Californias housing market.
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2014 Annual Housing Market Survey

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2014 Annual Housing Market Survey

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2014 ANNUAL HOUSING

SALES OF EXISTING DETACHED HOMES

SERIES: Sales of Existing Single Family Homes

*Sales are seasonally adjusted and annualized

DEMAND FOR INVESTMENT & SECOND/ VACATION

Long Run Average: 12 %

MORE DISTRESSED SALES ARE BEING ABSORBED BY

Share of Distressed Sales Bought by First-Time Buyers

SERIES: 2014 Housing Market Survey

EQUITY SALES VS. REO VS. SHORT SALES (2014)

Share of Total Sales

Median Home Price

Sales-to-List Price Ratio

% of Sales With Multiple Offers

Avg. Number of Offers

% of All Cash Sales

SERIES: 2014 Housing Market Survey

EQUITY SALES (2011 - 2014)

Share of Total Sales

Median Home Price

Sales-to-List Price Ratio

% of All Cash Sales

SERIES: 2014 Housing Market Survey

REO SALES (2011 - 2014)

Share of Total Sales

Median Home Price

Sales-to-List Price Ratio

% of Sales With Multiple

Avg. Number of Offers

% of All Cash Sales

SERIES: 2014 Housing Market Survey

SHORT SALES (2011 - 2014)

Share of Total Sales

Median Home Price

Sales-to-List Price Ratio

% of Sales With Multiple

Avg. Number of Offers

% of All Cash Sales

SERIES: 2014 Housing Market Survey

MARKET COMPETITION COOLS DOWN

SERIES: 2014 Housing Market Survey

FEWER HOMES SOLD ABOVE THE ASKING PRICE AS

Amt. of Price Reduction

Below Asking Price

Above Asking Price

SERIES: 2014 Housing Market Survey

FEWER HOMES SOLD ABOVE THE ASKING PRICE

% of Sales above Asking Price

Med. Price Discount

Median Price Discount & Weeks on Market

Long Run Average = 19%

PRICE REDUCTION PRIOR TO AN OFFER BEING MADE

Amt. of Price Reduction

SHARE OF CASH BUYERS IS THE LOWEST SINCE 2009

% of All Cash Sales

Almost one-fourth of buyers paid

THE SHARE OF INTERNATIONAL BUYERS DECLINES

REALTORS WORKED WITH INTERNATIONAL BUYERS

REASONS TO BUY IN CALIFORNIA

Advanced Educational Opportunities

Amazing outdoor environment

Santa Monica College

COUNTRY OF INTERNATIONAL BUYER

SERIES: 2014 Housing Market Survey